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Monetary Policy

Oil price plunge prompts Iraqi cut

The Central Bank of Iraq has cut its benchmark rate by a full percentage point to 15% days after the governor warned that the dismal global outlook and the slump in oil prices could drag the country into recession.

Bank of Japan split on rate cut

Bank of Japan policymakers were divided in making the first cut in more than seven years on Friday. The central bank lowered its overnight lending rate from 0.5% to 0.3% due to a "severe" adjustment in the world economy.

Blanchflower: I told you so on rate cut

David Blanchflower, an external member of the Bank of England's Monetary Policy Committee (MPC), criticised his fellow committee members for not taking a forward-looking approach, which meant rates had stayed too high too long.

Fed rate cut of little consequence?

The Federal Reserve's half-point cut to its key rate - the federal funds target - may have triggered a surge in Asian and European stock prices on Thursday. But the policy change may have little bearing on the cost of borrowing it is meant to influence…

ECB communicates well

European Central Bank's (ECB) monetary policy communication is clear in about 95% of cases, finds a new paper from the International Monetary Fund.

Slovakia cuts rates in line with ECB

The National Bank of Slovakia shifted its policy rate for the first time in 17 months on Tuesday, cutting by half a point to 3.75% - on par with the European Central Bank's (ECB) benchmark borrowing cost.

Trichet hints at rate cut

Jean-Claude Trichet, the president of the European Central Bank (ECB), on Monday signalled the Governing Council would cut interest rates at its next meeting on 6 November.

Korea cuts by 75bp on signs of slowdown

The Bank of Korea on Monday slashed its key rate by 75 basis points in a surprise move to counter an economic slowdown. The central bank also broadened its collateral rules to include some mortgage-backed securities on signs of a liquidity shortage.

Korea's Lee urges caution

Central banks need to be cautious in coping with price pressures as financial markets are very unstable and their future direction is unclear, said Seongtae Lee, the governor of the Bank of Korea.

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