Monetary Policy
RBI holds rate despite stubborn inflation
Policy-makers hint at need for further tightening as inflation stays above target
‘Stubborn’ inflation puts an end to Canada’s tightening pause
Bank of Canada raises main rate by 25 basis points as it predicts inflation will fall to 3% in the summer
Fed contemplates rate hike or ‘skip’
Top officials indicate the terminal rate is not yet reached – but a pause is possible
Central banks’ pandemic interventions averaged 6% of GDP
IMF paper finds relief measures were three times bigger than in global financial crisis
RBA raises interest rate to 11-year high
Governor Philip Lowe signals further rate hikes may be needed
Riksbank to investigate year-end distortion in money market rate
Swestr tends to decline in the last business day of the year
Banknotes: April to June 2023
A round-up of news and salient issues that have affected central bankers in the past three months
Dominican Republic cuts key rate by 50bp
Central bank expects headline inflation will have returned to target in May
Bank of Mexico to maintain tight policy, minutes say
Board says it will have to keep rates at 11.25% “for an extended period”
Lagarde warns against excessive tightening
Eurozone inflation declined sharply in May from 7% to 6.1% and core inflation declined to 5.3%
Thailand’s central bank raises interest rate for sixth consecutive time
Central bank highlights upside risks to inflation amid economy recovery
Nigerian parliament lifts central bank financing limit
Central bank has lent government tens of billions as fiscal problems mount
Hank model reveals monetary non-neutrality
Inequality and zero lower bound suggest monetary policy can impact long-term real rates
Carbon pricing would have ‘limited impact’ on eurozone inflation, says paper
Inflation would rise less than 0.2% per year until 2025 and then decline, researchers say
ECB needs ‘persistence’ in tight policy, French governor says
Transmission is slow but rate should reach terminal level in summer, says Villeroy de Galhau
Sarb raises rates and warns of worsening economy
Central bank cuts growth forecast and says long-term inflation expectations are rising
Nigerian MPC continues tightening
Official figures show slight rise in inflation as pressure on currency continues
Central banks should abandon floor systems – BIS’s Borio
Abundant reserves are causing distortions and could hamper policy-making, economist says
Governors weigh trade-offs between inflation and financial stability
Officials stress central bank independence is key to addressing these risks
Iceland raises rates 125bp to head off ‘wage-price spiral’
MPC orders largest increase in two-year tightening cycle as inflation remains near 10%
RBNZ raises rates to peak level
Central bank predicts rates will come down slightly faster than in February forecast
Bank of Israel increases rates by 25bp to 4.75%
Central bank stresses inflation slowed down over the last three months
ECB policy leaks have ‘sizeable impact’
Leaks tend to reflect minority views and reverse trends in short-term rates
PBoC holds key lending rates for ninth straight month
Central bank unlikely to cut rates this year amid yuan weakness, analysts say