Monetary Policy
ECB watchers cut inflation forecasts
Average forecasts in 2014 and 2015 drop to 0.5% and 1% respectively, but probability distribution reveals little concern over deflation in the eurozone
Central Bank of Costa Rica should not have a growth target, says IMF
Costa Rican authorities should 'resist pressures to expand the central bank’s mandate' to include growth, according to IMF; general manager agrees
Carney: Inflation ‘likely’ to drop below 1%
Bank of England signals rates firmly on hold into 2015 as probability rises of inflation falling below 1% in the short run; real wage growth likely to accelerate over the year
No evidence US prices were ‘more stable or less uncertain' before or after WWII
Experience shows ‘well-managed fiat regime' can achieve same level of moderation in price swings as gold standard, according to Bank of Korea working paper
Riksbank board at a loss over falling inflation, minutes suggest
Ingves says Swedish economy needs ‘two different policy rates: one for households and one for companies', while central bank casts doubt on new mortgage repayment rules
PBoC sheds light on opaque liquidity measures
Central bank confirms injection of billions of renminbi via new ‘medium-term lending facility’ as part of efforts to offset weaker foreign exchange inflows
RBA markets head details Australian approach to securitisation
Chris Aylmer outlines RBA’s ‘very high standard’ of ABS risk management in its liquidity operations, saying the approach will evolve over time
Lagarde approves of BoJ’s ‘brave’ decision to launch more QE
IMF managing director describes ramping up of asset purchases as ‘perfectly legitimate’ and ‘brave’ on high-level panel in Paris; Yellen, Coeuré, Rajan and Carstens also feature
Cleveland Fed president sees forward guidance evolving in normal times
Loretta Mester suggests it will focus less on when policy will be changed and ‘more on the rationale for policy decisions’; sees FOMC summary of economic projections playing ‘central role’
Hélène Rey warns advanced economies are not safe from US spillovers
Leading economist says spillovers from US monetary policy affect both advanced economies and emerging markets, weakening domestic policy; NY Fed's Bill Dudley responds
BlackRock chairman warns Carney over low rate environment
Laurence Fink tells senior central bankers at Banque de France symposium that private institutions could ‘refuse to lend’ if rates remain low; Carney questions claim
Kyrgyz Republic marshals journalists in financial literacy push
National Bank spokeswoman says central bank is taking the lead with broad communication strategy while government finalises plans; journalists seen as ‘effective information transfer tool’
ECB publishes letters between Trichet and Irish government
Letters relate to the period leading up to Ireland’s decision to enter an EU/IMF programme; ECB threatened to withhold access to ELA unless Ireland sought a bailout
Draghi dismisses reports of ECB rift
ECB president says it is ‘fairly normal to disagree about things’ and points to divisions on FOMC; earlier reports had raised questions over Draghi’s leadership style
ECB staff told to prepare for further measures
ECB keeps monetary policy stance unchanged; governing council tells staff to ensure the ‘timely preparation' of unspecified 'further measures’ to be implemented ‘if needed’
Kocherlakota wants FOMC to stress target symmetry
Minneapolis Fed president wants FOMC to clarify inflation objective; also calls for adoption of benchmark two-year time horizon for returning inflation to target
Poland bucks expectations and EU trend with rate hold
National Bank of Poland holds key rate at 2.5% despite widespread expectations of a cut, stoked in part by the National Bank of Romania's easing policy yesterday
Kuroda affirms determination to ‘drastically convert’ Japan’s deflationary mindset
BoJ governor stresses commitment to continue with drastic policy measures until the ‘chronic disease of deflation’ is eradicated, in first speech since quantitative easing was ramped up
RBA’s Stevens highlights challenges as rates stay on hold
Monetary policy statement registers some concern over risks originating from Chinese housing, heightened volatility and a high Australian dollar, but rates kept steady
Fisher ‘encouraged’ by FOMC guidance
Dallas Fed president Richard Fisher welcomes FOMC statement last week; believes ‘flight pattern’ of US economy is toward higher employment and inflation at the 2% target
Asian central banks build ‘brick house’ to withstand ‘big bad wolves’
Tetangco sets out plan to insulate Philippines against global market volatility; Thailand's Prasarn warns macro-prudential measures are ‘reaching their limits’
Bank of Russia hikes interest rates to stem ruble sell-off
Central bank raises key rate by 150bp to highest level since 2009 as currency reaches record low against dollar; spent $3bn propping up ruble on October 29
Kocherlakota explains dissent from FOMC decision to end asset purchases
Minneapolis Fed president says downside risks to inflation outlook ‘arguably worse' than a year ago; says evidence from Japan and Europe shows need to act on 'an ongoing basis'
Split BoJ shocks markets with extra stimulus
Divided board narrowly votes in favour of a substantial boost to asset purchases; analysts note uncanny timing with government pension fund’s plan to add risk