Monetary Policy
Turkey’s monetary policy will depend on fiscal caution, central bank says
Minutes say MPC could further tighten policy if the government fails to deliver on promises
Yi Gang makes People’s Congress debut as dilemmas grow
Governor says he sees smaller room for cutting reserve requirement ratios in 2019 but does not rule out the possibility
IMF says Gambian central bank is managing well
Significant policy rate cuts are “appropriate” in light of falling inflation, IMF report says
Climate change matters for monetary policy – RBA’s Debelle
More frequent and acute climate disruptions need inclusion in economic models
Housing prices fuelled by low interest rates in Australia – research
Increased migration has also boosted rents since the 2000s, RBA authors find
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
Brainard hints at Fed’s monetary policy plans
Governor’s speech signals plans on policy rates and Treasury bills purchasing after QT end
Draghi unveils new bank funding as ECB forecasts slower growth
Forward guidance extended and third round of TLTROs introduced as Draghi warns of uncertainty
Weak pass-through may shield UK from sudden rate rise – BoE’s Saunders
Central banks may start to lose control of policy transmission even above lower bound, says MPC member
ECB’s negative rates increased eurozone credit supply – IMF paper
Cuts above zero lower bound did not have same effects on banks, researchers find
Two FOMC members signal Fed may hold rates steady
New York and Boston Fed presidents expect US growth to slow to 2% this year
BoE paper: corporate bond purchases boosted market liquidity
Study of post-Brexit QE finds purchases helped support bond market liquidity
Bank of Canada keeps rates unchanged on weaker economic outlook
The central bank thinks it is still necessary to keep policy rate below its neutral range
EMEs have limited policy independence if open to capital flows, researchers find
Alternative policy tools can be deployed to overcome the dilemma, the authors say
Markets still in thrall to central banks – BIS
But some apparent anomalies may be signs of healthier market function, says Claudio Borio
Malaysia keeps rates unchanged on lower inflation pressure
Interest rates remain at 3.25% as lower oil prices keep headline inflation under control
Kuroda warns of more QE if yen continues to strengthen
But Bank of Japan continues to cut purchases of Japanese government bonds
Costa Rica has significantly improved inflation targeting – IMF staff
IMF report welcomes end to governors’ terms being linked to presidential elections
Timing of US intraday payments may be useful signal – New York Fed paper
Lenders made intrabank payments earlier once Fed expanded balance sheet, researchers say
Bernanke argues for ‘time-limited price targeting’ policy framework
Committing to make up inflation shortfalls in past year would avoid overshooting, paper finds