Monetary Policy
BoE paper finds non-banks act as global stabilisers
Non-bank firms help dampen the impact of US monetary policy spillovers, authors find
Serbia continues rate increases
Inflation stalled in double-digit range as central bank battles “second-round effects”
The always imminent demise of the global dollar
Creating effective alternatives will remain long and arduous despite China’s development of Cips, the mCBDC bridge and any oil-price redenomination, writes Barry Eichengreen
Fed presidents in chorus for smaller rate hikes
Harker, Daly, Collins and the departing Evans all signal preference for 25bp in February
Bank of Canada may be set for billions of losses
Think-tank warns losses could pose reputational risk for central bank
Bank of Korea raises policy rate to 14-year high
Two central bank board members voted to hold the rate steady
Peru raises rates for 18th consecutive month
Inflation remains stubbornly high, but central bank is optimistic it will fall in 2023
US CPI inflation falls again
Falling fuel prices drive down index for sixth straight month
Egyptian currency plunges amid move to flexible exchange rate
“Heavily managed” exchange rate “has not served Egypt well”, says IMF mission chief
BoE’s Pill says UK vulnerable to inflation persistence
Confluence of factors leaves UK in worse position than others, chief economist says
BSP governor signals smaller rate hike likely next month
Governor Felipe Medalla says pressure from US monetary policy has declined
Romania may be at end of tightening cycle
Inflation resumed upward march in November, but major bank says cycle has ended
Missed inflation target has ‘sizeable’ fiscal impact – paper
Persistent undershooting by ECB caused problems for countries with long-duration debt, authors say
Bank of Japan to raise inflation forecasts, reports say
Central bank said to be likely to project nearly 2% annual inflation for 2024
FOMC waiting for ‘more evidence’ of inflation decline
December FOMC minutes show staff and policy-makers warning inflation risks remain high
Tunisian governor warns country needs IMF deal after latest hike
Country faces rising inflation as foreign exchange dwindles and political crisis continues
Israel raises rates to highest level since 2008
Governor warns new government that markets expect fiscal responsibility
Paper explores development and monetary policy transmission
Financial development only improves transmission to some rates, Colombian researchers find
Syria devalues currency
Black market still trading at substantially weaker rate
Rates round-up: Turkey pauses rate cuts
Egypt hikes main rate 300bp after IMF deal; Indonesia decelerates tightening; and more
Italian prime minister says ECB policies are ‘making things worse’
Government ministers warn of difficulties for Italian sovereign bonds
The strong dollar, global inflation and global recession
Steve Kamin asks whether the Fed’s tight policy is pushing the world towards recession
New law gives BI monetary financing power during crisis
Law also adds mandate for central bank to support economic growth
ECB adjusts risk controls with eye on collateral availability
First assessment of climate risk in collateral framework concludes no climate-related changes needed