Monetary Policy
Fed holds rates amid pressure from White House
Powell says he has had no contact with Trump since president said he would “demand” easing of policy
Bank of Canada cuts rates and ends quantitative tightening
Macklem says monetary policy cannot offset negative effects of tariffs
Sri Lanka holds rates amid persistent deflation
Central bank expects price falls to intensify owing to cuts in electricity tariffs
Medium is the message, say Bank of Spain researchers
Coverage of policy decisions has greater impact than central banks’ own comms, study finds
Pakistan delivers sixth consecutive rate cut
Decision taking benchmark rate to 12% means policy has been eased by 1,000bp since last June
Unexpected rate hikes push down commodity prices – research
The most traded commodities are more vulnerable to monetary policy shocks, BoE paper shows
Trump’s rate cuts ‘demand’ spells trouble for Fed – economists
Comments will cause problems for central bank and threaten its independence, academics claim
Book notes: Central bank capitalism: monetary policy in times of crisis, by Joscha Wullweber
This book asks if independent monetary policy is feasible at a time when central banks prop up the poorly regulated shadow banking sector
Singapore eases monetary policy for first time since 2020
Central bank slows exchange rate appreciation as core inflation falls and trade concerns loom
BoJ raises policy rate to highest level since 2008
Policy-makers raise inflation forecasts and signal further rate rises
Turkey’s central bank cuts rates by another 250bp
Second consecutive reduction comes despite inflation remaining at 44%
Norges Bank says time is not yet right for easing
Central bank holds rates, but suggests cut is likely in March
Bank of Israel governor hints at rate cuts this year
Yaron suggests up to two cuts in second half of 2025 as inflation edges towards bank’s target
Bank Negara Malaysia holds policy rate
Central bank has left key rate unchanged for 20 months against backdrop of strong growth
Large firms drive inflation in advanced economies – BIS study
Analysis of barcode scanner data finds pricing decisions by individual companies have outsize impact
Central banks’ words matter for climate
Line between EMEs speaking about greening finance and AEs being wary of climate risks are blurring, argues Emanuele Campiglio
PBoC holds key lending rates
Move comes after China hit 5% growth target for 2024, but analysts expect further easing this year
Bank of Korea unexpectedly holds policy rate amid political turmoil
Central bank cites need to assess political developments and incoming US administration’s policies
Bank Indonesia delivers surprise rates cut
Central bank shifts focus from backing rupiah to supporting growth with 25bp easing
ECB presidents’ displays of emotion affect markets – study
Research says leaders’ facial expressions and tones of voice amplify effects of their policy statements
BoJ to discuss whether to raise rates, deputy governor says
Himino Ryozo says policy-makers need to monitor wage growth and future US policies
BoE study suggests policy can affect inflation expectations
However, many households still have theoretically “wrong” idea about effects of tightening
Serbia rules out further easing for now
Central bank says previous rate cuts have yet to make full impact
Moldova makes surprise 200bp hike
Energy prices spur up Moldovan inflation prompting unscheduled meeting