Monetary Policy
Fed hikes have created ‘paradoxical’ easing – BIS
Review draws parallels between current episode and “Greenspan conundrum” of mid-2000s
Bank Indonesia expands reserves averaging mechanism
Bank Indonesia to extend the scope of its reserve requirement averaging mechanism to include foreign currency and Islamic banks
Bank of Korea makes first hike in six years
Central bank triggers hiking cycle despite below-target inflation, as economy shows “solid” growth
Bank of England launches beta version of new website
New website designed by Cyber-Duck, design agency which helped launch BoE’s new fiver website in 2016
Strong growth and lower unemployment allows Fed to normalise policy, Yellen says
Outgoing chairwoman adds policy is not preset and will depend on economic data
Powell to explain policy outlook before US Senate
Nominee set to defend loose policy stance and independence of central bank as new chair
ECB’s public sector asset purchases pushed down repo rate, BdF paper finds
Effect was particularly strong before January 2017, researchers say
Haldane: BoE working to close ‘trust deficit’
BoE chief economist says mix of “layered” communications, public engagement and education is helping to overcome perception of aloofness
ECB should not raise rates until 2020 – OECD
OECD says European Central Bank should “gradually” taper asset purchases in 2018
SBP welcomes ‘visible change’ in government borrowing
Government’s reduced reliance on borrowing from the central bank has supported monetary policy implementation, the State Bank of Pakistan says
Ultra-low rates hampered productivity in US, researchers find
A slower pace of policy normalisation can help boost productivity and growth
Distorted Swiss surplus not good base for policy – Jordan
Multinationals’ operations, higher nominal rates abroad and Swiss franc appreciation increase the surplus
ECB officials disagree on open-ended QE
Agreement on keeping private-sector purchases sizeable, which would increase their importance
Banking sector openness affects policy transmission, BoK paper finds
Bank of Korea study focuses on smaller open economies
Public satisfaction with BoE rises with policy understanding
The research recommends targeting young people with low incomes, as well as women
December hike in focus despite FOMC inflation worries
Some Fed policymakers fret that inflation expectations are too low to bring inflation back to target, but broad view is of an economy gathering pace
Zambia cuts rates amid improved inflation outlook
Inflation projected to continue trending towards lower end of target over medium term; governor praises government efforts to rein in deficit
Turkish central bank takes action over falling currency
Rate rises are very likely, and the Turkish president’s actions are key, says observer
Mexico raises minimum wage above inflation
Central bank warned about inflationary pressures that an excessive increase may create
Do not assume history will repeat itself – Yellen
In conversation with Mervyn King, Janet Yellen reflects on her four years in office as Fed chair, saying there was not time for champagne on her first day