Monetary Policy
Central Bank of Kenya cuts rates again
Policy-makers look to offset fiscal tightening and push economy back to potential
Fed paper models new transmission channels of forward guidance
Models allowing for household borrowing amplifies forward guidance effectiveness, researchers find
Lagarde promises wide-ranging review as ECB holds rates
ECB’s monetary policy review will look at green finance and engagement with citizens – Lagarde
Norges Bank’s new MPC leaves rates unchanged
Policy rate likely to be on hold for some time, Norway’s central bank says
Bank of Canada holds rates but cuts growth forecast
Central bank cuts expected growth by 0.75 percentage points lower for both Q4 2019 and Q1 2020
Should the ECB increase the transparency of governing council meetings?
Observers and former officials weigh pros and cons of greater disclosure for policy efficacy and independence
Optimal US reserve regime is between scarcity and abundance – research
Former NY Fed official Simon Potter and co-authors map post-crisis demand curve for reserves
Bank Negara Malaysia surprises market with ‘pre-emptive’ rate cut
Analyst believes move signals end to “brief easing cycle”
Book notes: The long journey of central bank communication, by Otmar Issing
This book is a “masterly exposition on central bank communication, its evolution and continuing challenges”
European companies’ credit demand shrinks despite ECB stimulus
In Q4 2019, credit demand from non-financial corporations declined for first time in six years
Atlanta Fed research offers 17th century lessons for proposed standing repo facility
Crises can pose demand and credibility challenges, researchers warn
Fed slims down repo market interventions
Relative to year-end, the Fed will cut $250 billion of the cash offered to banks
ECB willing to provide further stimulus – minutes
Governing council stresses inflation remains below its medium-term goal
South Africa surprises markets with rate cut
Sarb reduces interest rates by 25 basis points to 6.25%
Turkish central bank makes fourth rate cut in six months
Central bank has reduced rates by 850 basis points since president dismissed last governor
Regional Fed presidents warn asset purchases are creating risks
Robert Kaplan expresses concern over Fed’s response to market funding pressures
Central banks must learn lessons of BoJ’s inflation target rise – Fed paper
Failure to hit old targets and disagreement among policy-makers will harm credibility, paper argues
BoE officials hint at willingness to cut rates
Carney, Saunders and Vlieghe all signal cut may be needed, as UK growth and inflation disappoint
ECB paper looks at role of uncertainty in central bank comms
Researchers use machine learning to study market reactions to BoE inflation reports
Fed to wean banks off daily repos later this year
Total reserves may need to be higher than Fed initially judged as demand for repo operations remains strong
Argentina reduces key rate floor again
New governor thinks ultra-tight financial conditions failed to tackle high inflation
Carney launches review of BoE monetary policy
“Deep structural changes” have left little space for conventional tools to work, governor says
Riksbank minutes show disagreements over December rate hike
Dissenting board members cite looser international policy, weak growth and below-target inflation