Monetary Policy
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
Book notes: The political economy of central banking, by Alessandro Roselli
Roselli’s book offers a comprehensive history of the relationship between governments and central banks
BoJ official sees no need to act against rising JGB yields
Bond taper plan should continue as price movements not disruptive, board member says
Tariffs not the only policy causing uncertainty – Fed presidents
Officials highlight risks from US administration’s approaches to deregulation and immigration
Sri Lanka cuts benchmark rate to 7.75% as deflation persists
Central bank projects inflation will move into positive territory during third quarter
Maurice Obstfeld on the trade war’s damage to the monetary system
The former IMF chief economist speaks about Trump’s chaotic economic policies, the erosion of Fed independence and dollar stability, difficult policy trade-offs for central banks, and the threat to the Bretton Woods institutions
Nigeria keeps policy rate at 27.5%
Bank makes second consecutive hold as inflation declines, and cites alarm over trade policy uncertainty
Romania opts to hold, citing domestic and global uncertainty
Central bank cites fluctuating commodity prices, tariff risks and volatility resulting from national politics
Ukraine’s Andriy Pyshnyy on the US minerals deal, ongoing reforms and post-war plans
The National Bank of Ukraine’s governor speaks about managing inflation, financial sector reform, FX reserves, international aid and actions in the event of a peace deal
Bank of Mexico puts growth before prices with rate cut
Economists say decision reflects concerns about possible tariff-induced recession
Dallas Fed study adds to official scepticism of US tariffs
Research says potential for domestic gains will depend on other countries not responding
Korean officials argue for stablecoin authorisation body
Central bankers warn of currency substitution and monetary policy risks
Tariffs already raising US inflation – Fed study
Researchers say trade policies were starting to affect consumer prices in March