Monetary Policy
Turkey raises overnight lending rate in emergency move
Central bank tries to protect lira after opposition figure’s arrest triggers fall in currency
Brazil delivers another 100bp hike
BCB’s battle against inflation continues as government announces more fiscally expansionary measures
FOMC holds rates amid uncertainty and stagflation risks
Fed chair Jay Powell says inertia also a factor as committee opts for caution
Denmark will reach r* this year – central bank
National Bank of Denmark continues 26-month streak of non-intervention in FX market
Indonesia holds rates after stock market rout
BI opts to defend exchange rate as country records deflation for first time in 25 years
Morocco cuts rates to 2.25%
Central bank expects inflation to be near 2% over next two years
US stagflation risk is significant and rising, experts say
Path of tariffs will largely determine level of risk, academics tell Central Banking
Bank of Japan holds rates amid trade uncertainty
Strong wage growth underpins economic recovery but central bank remains wary of US tariffs
ECB tells lenders to regularly tap central bank liquidity
Banks should include refinancing operations in day-to-day liquidity management, say Buch and Schnabel
Insurers play key role in monetary transmission – IMF paper
Authors show sensitivity to long end of yield curve is “causally connected” to risk premia
Professional long-run inflation forecasts are flawed – study
Chicago Fed research says projections are bogged down by cognitive distortions and overconfidence
Peru holds policy rate at 4.75%
BCRP stays put as inflation and growth continue to move in right direction
CBRT says protectionism may drive up inflation
In MPC meeting minutes, central bank says tight policy has supported disinflation seen thus far
Forward guidance ‘partly to blame’ for inflation – panel
ECB should do more scenario planning, revise collateral rules and incorporate Taylor principles
ECB framework needs ‘few tweaks’ – panellists
Digital euro is “even more important” in the wake of Trump CBDC ban, says BdF governor
Bank of Canada cuts rates by 25 basis points
Monetary policy “cannot offset the impacts of a trade war”, says central bank
Ueda reaffirms BoJ’s exit from controlling long-term rates
Governor says surging bond yields are natural reflection of market expectations
Rates should stimulate economy in response to tariffs – study
Optimal monetary policy promotes employment and income, Minneapolis Fed paper argues
‘Trump slump’ hedges rise on rate cut fears
One dealer notes five-fold increase in number of clients hedging against possibility of faster easing