Monetary Policy
BoJ holds rates, plans to slow bond purchases
Central bank keeps policy rate at 0.5%, will reduce JGB taper from next year
Pakistan holds interest rate at 11%
Central bank says policy at right level to push inflation towards 5–7% target
Policy must be forceful to anchor expectations, panel hears
Central bankers discuss lessons from post-Covid inflation surge at Summer Meetings
Mexico’s deputy governor hints at rate hold
Heath says analysts disagree with central bank over timeline on taming inflation
Trump: Powell is a ‘numbskull’ for not cutting rates
President calls for 100bp easing, while vice-president says Fed policy is “monetary malpractice”
A fireside chat with BIS head Agustín Carstens
The lifetime achievement award-winner speaks with Chris Jeffery about how experiencing inflation shaped his career, gaps in economic theory and macro-pru governance, the future of money and the importance of international co-operation
Central bankers discuss policy-making amid high uncertainty
Flexibility, caution and financial stability analysis can support monetary policy, panellists say
ECB to move to ‘hybrid’ balance sheet model – Finland’s Välimäki
Bank of Finland board member heralds “new dawn” of Eurosystem monetary policy implementation
Russia’s rates cut does not presage shift in stance
Experts say central bank remains alert to inflation risks and will maintain ultra-restrictive policy
Forecasting and narratives under uncertainty
Jagjit Chadha argues the Bank of England should deploy better analysis as the basis for clear communication under uncertainty
Banque de France governor declares victory over inflation
Villeroy de Galhau says France has to “spend better” to reduce debt
Tariffs will raise US prices throughout 2025 – Fed governor
Kugler says progress on core goods inflation has been reversed and trade policy could make things worse
Inflationary shocks hurt US labour market and output – Fed study
As real wages decline, workers search for new, less economically productive jobs, research finds
RBI cuts rate by 50bp to 5.5%
Bank continues to loosen policy amid cooling inflation and global uncertainty
European Central Bank reduces rates by 25bp
Lagarde hints at pause in next meeting, dispels rumours about early departure
Chance of US recession lower, but still high – NY Fed study
Authors say model puts chances at 75%, compared with 83% at beginning of 2024
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