Monetary Policy
Polish economist encourages ‘broad’ collateral acceptance
National Bank of Poland’s head of monetary policy analysis identifies risks in central banks adopting an overly loose or overly tight collateral framework
RBNZ hikes rates for first time in three years
Reserve Bank of New Zealand raises its key rate to 2.75% and signals gradual tightening will continue until the rate has increased by 'about two percentage points'
Bundesbank stands firm on risks posed by non-standard policy
Annual report reiterates German concerns that non-standard policies pose a threat to central bank independence; Weidmann says wintry economic conditions are beginning to warm
Cœuré delineates ‘the good the bad and the ugly’ of deleveraging
ECB executive board member says deleveraging is a double-edged sword and stresses the need for central banks to nudge financial institutions towards ‘good’ deleveraging
ECB technically prepared for negative deposit rates
The ECB has made the IT adjustments necessary to cut its deposit rate below zero, according to Bundesbank’s deputy head of markets, but the policy has its drawbacks
Praet says ECB minutes could spell end for forward guidance
Executive board member Peter Praet says publishing ‘accounts’ of governing council minutes might reduce the need for forward guidance
Brazil minutes highlight inflation 'resistance' concern
Central Bank of Brazil remains concerned about 'resistance' of inflation despite more than 400bp of rate rises, latest minutes show
BoJ holds rates as tax hike looms
Bank of Japan policy board holds QQE steady and maintains economic assessments in its last meeting before consumption tax hike comes into effect
BIS economists give forward guidance mixed review
Research in quarterly review says forward guidance has shaped market expectations but warns it could ‘encourage excessive risk-taking’ in the markets
Bank of Israel cut rates despite 'rapid' increase in house prices
Four out of five members of the Bank of Israel's MPC backed last month's 25 basis point rate cut to 0.75% following weaker performance across range of indicators
ECB paper studies imbalances in major eurozone countries
Use of a new multi-country model demonstrates stimulus effects on aggregate demand from changes in interest rates at ECB-level 'are present but not overly large'
International perspective helps resolve domestic economic puzzles, says Canada deputy
Bank of Canada deputy governor John Murray underscores the importance of looking beyond borders when setting monetary policy
FOMC members discuss international spillovers of Fed monetary policy
Charles Plosser and Richard Fisher sound off on accommodating policies' impact on other countries, but make no promises of international considerations on FOMC
Stevens dismisses concerns over Australia’s higher inflation target
RBA governor and deputies grilled over appropriateness of higher inflation target than most advanced economies; questions also raised on credit growth, competitiveness and the move away from mining
ECB holds rates on back of ‘positive’ data
Mario Draghi attributes ECB inaction to improvement in economic data; new staff forecasts show inflation climbing to 1.7% only in the last quarter of 2016
Caruana calls on central banks to explain reaction functions
BIS general manager says central banks must manage expectations as they normalise monetary policy, partly by explaining how ‘policies might change as conditions evolve’
Russia boosts forex firepower as ruble weakness shifts inflation risks to upside
The Bank of Russia has quadrupled the amount it will spend to keep the ruble steady; inflation expected to stay low but central bank is alive to upside risks
Forward guidance ‘escape clause' increases effectiveness, says Colombian paper
Incorporating a threshold into forward guidance means central banks can change course when economic conditions dictate - meaning it is welfare-improving
Lithuania governor woos eurozone counterparts
Vitas Vasiliauskas meets central bank heads across eurozone to present Lithuania’s case for entry; Marek Belka calls for review of Poland’s euro prospects
Bank of Uganda warns loss of aid is ‘source of uncertainty’
Central bank says further exchange rate depreciation in the wake of the country's new anti-homosexuality law could create ‘stronger inflationary pressures'
Unorthodox monetary tools worked for Turkey, central bank research shows
The introduction of asymmetric interest rate corridor and ‘reserve option mechanism' has helped mitigate the impact of hot money flows, according to February papers
Nowotny calls on IMF to help address global spillovers
IMF surveillance function should be further developed to help overcome negative spillovers in an increasingly inter-connected world, Austria governor says
Russia hikes rates as Ukraine crisis brings financial volatility
The Bank of Russia raised rates by 150bp today in an emergency measure aimed at taming currency volatility; Ukraine brings in tighter forex controls
Fed transcripts reveal forecasting travails
Crisis year transcripts reveal extent to which the Federal Reserve struggled to predict the depth of recession and deflation, raising questions about the usefulness of underlying models