Monetary Policy
Interview: Michael Woodford
The Columbia University monetary economist talks to Malan Rietveld about central banking in the United States
Do we get more out of theory than we put in?
John B. Taylor assesses the impact of theoretical breakthroughs on monetary policymaking, and evaluates the results
Japan’s normalisation strategy in jeopardy
Hisashi Harui suggests that the Bank of Japan is still unable to get its message across clearly to the markets
Why the Bank of Japan needs to regain trust
Unless the Bank of Japan urgently corrects a number of policy flaws, the central bank law could become a political football, Robert Feldman suggests
ECB faces hard choices as inflation hits 2.6%
Inflation in the euro area rose to 2.6% in October - half a percentage point higher than in September, according to statistics published by the Eurostat, the EU statistics office.
Iceland makes surprise rate hike
The Central Bank of Iceland's rate-setting board unexpectedly decided on Thursday to raise its benchmark policy rate by 45 basis points to 13.75%.
How monetary policy responds to uncertainty
Under conditions of uncertainty, optimal monetary policy responds more to price and wage inflation than to natural-rate terms, according to research published by the Federal Reserve.
Japan holds rates for eighth consecutive month
The Bank of Japan's rate-setting board has kept the target for the benchmark uncollateralised overnight call rate at 0.5%.
Sweden hikes rates to highest level in five years
The Riksbank's rate-setting board on Tuesday decided to raise rates for the fourth time this year by 25 basis points to 4%.
India increases reserve ratio to dampen inflation
The Reserve Bank of India has hiked its cash reserve ratio from 7% to 7.5% in an effort to curb inflation. The revised ratio, which was announced as part of its mid-term review of annual policy for the 2007/08 financial year, will apply from 10 November.
Norway leaves key rate at 5%
The Bank of Norway's executive board decided on Wednesday to keep its benchmark sight deposit rate at 5%.
Poland holds rates
The National Bank of Poland's rate-setting council decided to hold rates on Wednesday after data revealed economic growth will be slightly weaker than expected.
Monetary policy must put inflation first: Weber
Monetary policy's primary role is to guarantee price stability, said Axel Weber, the president of the Bundesbank.
Fed cuts rates despite strong growth
The Federal Open Market Committee (FOMC) decided on Wednesday to cut the federal funds rate by 25 basis points to 4.5% in spite of better-than-expected economic growth for the third quarter.
Japan rate hike unlikely after unemployment rises
The Bank of Japan's plans to raise rates may have to be put on hold again after government data on Tuesday revealed a 0.2% increase in the unemployment rate.
Hungary holds rates at 7.5%
The National Bank of Hungary's rate-setting board voted on Monday to keep its benchmark central bank base rate at 7.5%.
Israel leaves rates at 4%
The Bank of Israel's rate-setting board voted on Monday to hold its benchmark rate at 4%.
Norway's Gjedrem on monetary policy limitations
Monetary policy cannot influence real economic variables such as output and employment in the long run, according to Svein Gjedrem, the governor of the Central Bank of Norway.
Mexico unexpectedly hikes rates to 7.5%
The Bank of Mexico decided on Friday to raise its benchmark rate by 25 basis points.
Global events motivated Turkey's 50bp cut
The global economic slowdown expected to follow the credit crunch was behind the Turkish central bank's decision to cut its benchmark rate by 50 basis points earlier this month, minutes of the monetary policy meeting, published on Friday, reveal.
Why Poland's MPC held rates
According to minutes published on Friday, Poland's Monetary Policy Council (RPP) decided at its meeting on 25 and 26 September that as the medium term probability of inflation running above the inflation target (2.5% year-on-year) had fallen there was no…
Colombia holds rates at 9.25%
The Banco de la Republica decided on Friday to keep its benchmark rate at 9.25%.
Inflation behind first Brazil hold in two years
Fears that economic growth could lead to inflation were behind the Central Bank of Brazil's decision to hold rates for the first time since July 2005 earlier this month, minutes published on Thursday reveal.