Monetary Policy
Korean rate setting to focus on recovery
Monetary policy will be geared towards restoring economic growth the Korean central bank said in a statement on monetary policy for 2009.
Chilean paper on inflation persistence
This paper measures persistence of inflation in Chile and finds that it has increased sharply in recent years.
Iraq to cut rates
The Central Bank of Iraq has announced that it will reduce its key policy rate by 1 percentage point to 14%, starting next year.
Poland slashes on signs of sharp slowdown
The National Bank of Poland made its steepest cut since January 2001 on Tuesday and cautioned that the country's economy was set for a sharper-than-expected slowdown.
China bids to breathe life into ailing economy
The People's Bank of China has cut its key lending and borrowing rates for the fifth time in three months in its quest to shore up faltering growth in the world's fourth largest economy. However, the move met with disappointment from market participants,…
Fed further opens lending window
The Federal Reserve has announced a new lending facility that will allow an even wider range of institutions - including hedge funds - to access loans by the central bank.
How high is inflation? Depends how you ask
Seemingly small differences in how inflation is referred to in a survey can lead respondents to consider significantly different price concepts, says a paper from the New York Federal Reserve.
Japan acts to ease lending strains, cuts to 0.1%
The Bank of Japan has shaved two-tenths of a percentage points off its key rate and introduced a raft of measures aimed at easing financing tensions in the run-up to the year-end, including outright purchases of commercial paper.
Turkey cuts by 125 basis points
The Central Bank of Turkey cut its key rate by 125 basis points on Thursday after the slowdown in the Turkish economy showed signs of intensifying.
ECB to keep one-governor, one-vote system for now
The European Central Bank's (ECB) Governing Council has gone back on the voting structure set out in its statute and opted to keep its one-governor, one-vote regime until the number of eurosystem central banks exceeds 18. The central bank also said that…
Philippines cuts as World Bank pledges $200m food
The Central Bank of the Philippines lopped half a point off its key rate on Thursday as the World Bank approved a $200m loan to ensure the country's poor would have basic foodstuffs amid the growth slowdown.
Indian inflation plummets as fuel prices drop
India's key inflation measure has dipped by more than a percentage point over the course of a week.
A new model for long-run risks
A paper from the Kansas City Federal Reserve devises a model long-run risks model where inflation risks and volatilities are in line with survey data.
Monetary policy should respond to risk-taking
Unless monetary policy regimes respond to increased levels of risk-taking by market participants, fluctuations in the business cycle might be amplified in future, argues a paper from the Bank for International Settlements.
Norway slashes rates on "major shocks"
Norges Bank has followed the Riksbank's lead in chopping 175 basis points off its key rate. Exposure to "new major shocks" sparked the move, which leaves the central bank's key rate at 3%. Elsewhere, three other central banks cut their key rate by 50…
Fed cut a psychological boost but little more
At face value, Tuesday's Federal Open Market Committee statement was an historic move that underlined the US central bank's commitment to do all it can to counter the crisis. But, though the statement met with widespread approval from the markets, it…
Old Lady mulled another mammoth move
The Bank of England's Monetary Policy Committee (MPC), which slashed rates by a percentage point to take them to an all-time low earlier this month, considered backing an even larger move, the minutes of the meeting reveal.
UK inflation falls as King writes letter
British inflation fell in November but remains far above the Bank of England's target, obliging Mervyn King, the governor of the central bank, to write another letter explaining why inflation remains so high and what the Bank is doing to bring it down.
Saudi announces half-a-point cut
The Saudi Arabian Monetary Agency, Saudi's central bank, reduced its repo rate from 3% to 2.5% on Tuesday.
Global monetary policy and domestic stability
This paper by the Cayman Islands Monetary Authority examines the implication of improvements in global monetary-policymaking on the macroeconomic performance of small open economies.
South Africa begins loosening cycle
The South African Reserve Bank has cut its key rate from a five-year high and indicated it has room to ease further in the coming months.
Swiss cut rates on gloomy growth forecast
The Swiss National Bank (SNB) has cut its benchmark target range by a further half a point and said that it expects the economy to contract by up to 1% next year.
Britons lower inflation expectations
The British public significantly lowered its inflation expectations, the latest Inflation Attitudes Survey from the Bank of England reveals.
NZ's Bollard tells business to pitch in
Alan Bollard, the governor of the Reserve Bank of New Zealand, on Wednesday urged businesses to cut prices so that the central bank can keep rates low.