Monetary Policy
Hungary cuts rates as inflation hits lowest level in nearly a decade
Monetary policy council votes to reduce base rate to 5.5%, extending easing cycle
Paraguay holds rates for sixth time in a row
Central bank expects inflation, currently below target, to gradually increase to 3.3% by end of year
Thailand holds at 1%, as economists expect lengthy pause
Unanimous decision comes amid continued sluggish growth and higher inflation forecast
CPI quirk helps explain low Swiss inflation, says SNB’s Tschudin
Central bank official shares her views on monetary policy strategy
How do central banks handle criticism in the media?
Comms staff say critiques often are constructive while stressing the need for simple language
High debt raises ‘macro-financial’ risks in Americas – BIS study
Bulletin says interest costs can result in risk premia feeding into inflation expectations
BoE staff find uneven policy transmission across businesses
Survey findings suggest larger firms with high productivity and borrowing have better access to data
AI productivity shock may pull inflation up or down – BoE blog
Sectoral origin and speed of change will be key factors, economists find
Nepal has greater stability, but now it needs growth – IMF
Fund’s mission chief says central bank reforms are among measures laying path for future prosperity
Jamaica and Uruguay hold rates
Central banks cite deteriorating geopolitical tensions and extreme weather as upside inflation risks
Sweden holds while Iceland tightens
Both Nordic central banks cite lingering inflation risk, but reach different conclusions
Reconsidering the role of money in monetary policy
Euro policy architect Otmar Issing argues that central banks must improve their flawed inflation targeting frameworks
Market reforms are about boosting policy transmission, says CBN
Changes brought in by Nigerian central bank enable individual investors to participate in OMOs
ECB speeches ‘twice as religious’ as other central banks’ – blog
Bank’s speechwriters use devotional tropes during times of crisis, LSE research finds
Kenya, Mauritius, Namibia and Uganda all hold rates
Expert says El Niño weather event likely to drive greater rate variability in 2027
Peru holds rates for eleventh time in a row
BCRP highlights risk of escalating conflict in Middle East and more severe El Niño on inflation
Comms staff need to reflect on how their messages are perceived
BoE’s Eric Tong discusses research probing how the public receives central bank messages via the media
EU banks shrug off mooted minimum reserves increase
Doubling of unremunerated reserves would curb Eurosystem losses, but banks doubt it will pass
BCB signals tighter monetary policy for longer
Policy-makers say demand-driven inflation requires monetary policy to “remain tight”
RBA remains on hold and says inflation still too high
Economists predict interest rates in Australia will stay put until mid-2027
National Bank of Romania holds rates amid political instability
Board votes to keep policy rate at 6.5%, extending two-year hold
Yield curve data can improve estimates of r* – IMF paper
Results suggest r* has risen and help explain ‘soft landings’ after inflation surge
Mexico and Nicaragua hold interest rates
Banxico revises upwards its forecast for hitting 3% inflation target; while Nicaragua expects inflation to remain “low and stable”
Czech National Bank holds rates
Board votes to keep policy rate at 3.75%, citing assessment phase