Monetary Policy
Policy must be forceful to anchor expectations, panel hears
Central bankers discuss lessons from post-Covid inflation surge at Summer Meetings
Central bankers discuss policy-making amid high uncertainty
Flexibility, caution and financial stability analysis can support monetary policy, panellists say
ECB to move to ‘hybrid’ balance sheet model – Finland’s Välimäki
Bank of Finland board member heralds “new dawn” of Eurosystem monetary policy implementation
Russia’s rates cut does not presage shift in stance
Experts say central bank remains alert to inflation risks and will maintain ultra-restrictive policy
Banque de France governor declares victory over inflation
Villeroy de Galhau says France has to “spend better” to reduce debt
Tariffs will raise US prices throughout 2025 – Fed governor
Kugler says progress on core goods inflation has been reversed and trade policy could make things worse
Inflationary shocks hurt US labour market and output – Fed study
As real wages decline, workers search for new, less economically productive jobs, research finds
RBI cuts rate by 50bp to 5.5%
Bank continues to loosen policy amid cooling inflation and global uncertainty
European Central Bank reduces rates by 25bp
Lagarde hints at pause in next meeting, dispels rumours about early departure
Chance of US recession lower, but still high – NY Fed study
Authors say model puts chances at 75%, compared with 83% at beginning of 2024
Trump’s trade policy a ‘wildcard’, says Bostic
Atlanta Fed president says tariffs picture is “unsettled” and calls for patience on monetary policy
A fractured monetary system
US policy is encouraging a transition away from a dollar-led, rules-based order
BoJ advised to slow or maintain JGB tapering pace from 2026
Bond traders satisfied with current plan but disagree on future balance sheet policy
Reflections on the international financial situation
Former IMF head Jacques de Larosière writes that markets are blind to Trump's policy shocks that are fragmenting the monetary ‘system’, causing strain in the eurozone and may result in stagflation
Dovish Banxico minutes point to another 50bp cut in June
Weak domestic growth and tariff-hit foreign demand suggest further easing on horizon
Stablecoins impact US Treasury yields – BIS paper
Sector’s continued growth could affect monetary policy transmission, authors say
Bank of Korea makes 25bp cut and lowers GDP forecast again
Central bank hints at further easing as weak domestic recovery and US tariffs dim growth outlook
RBNZ cuts by 25bp in sixth straight rate reduction
New Zealand’s central bank signals steeper easing cycle as tariff uncertainty dents growth outlook
Bank of Israel holds benchmark rate
Central bank hopes to help stabilise markets as conflict in Gaza and global policy uncertainty continue
Turkish central bank raises reserve requirements
Move comes as governor says bank will maintain tight monetary stance
Egypt eases policy by 100bp
Central bank cuts benchmark rate to 24% and expects to meet inflation target in Q4 2026