Monetary Policy
Rwanda will keep easy policy while inflationary pressures are ‘limited’
National Bank of Rwanda introduces forward guidance in its latest semi-annual monetary policy statement; outlines plans to improve monetary policy transmission mechanism
BoJ extends lending schemes as economic growth disappoints
Two schemes aimed at stimulating bank lending are expanded and extended as economic data falls below Bank of Japan expectations; analysts expect more easing next quarter
ECB's Praet defends ‘innovative' OMTs
Redenomination risk premia, as faced by the ECB in the eurozone crisis, was a new challenge for central banks that needed a new solution: outright monetary transactions
Weidmann argues in Karlsruhe for strict monetary policy rules
Bundesbank president argues for legal strict limits to central banks' flexibility, saying such rules are particularly important to the functioning of European monetary union
Colombia sees benefit of weaker currency as inflation stays at record lows
Minutes say monetary policy framework is functioning well as lower levels of capital flight allow central bank to retain some of South America's lowest interest rates
Former HKMA chief Yam calls on PBoC to shift to policy rate
Founding chief executive of the Hong Kong Monetary Authority publishes a paper calling for interest rate and money base liberalisation on the mainland
Central Bank of Turkey expected to avoid drama with rate hold tomorrow
The bank, which hiked rates by 425 basis points in an emergency meeting on January 29, is widely expected to stay on current path; has continued to sell dollars in February to prop up lira
Noyer paints picture of ‘European Federal Reserve System’
Banque de France governor sets out vision of the ECB operating in a similar style to the Fed – with France taking the place of New York
Independence no substitute for rules-based policy
Thomas Cargill summarises the conclusions of four papers by world-leading economists on the issue of central bank governance and finds independence is overrated
Public opinion of BoJ policy continues to dive
Bank of Japan survey shows majority of Japanese people now think interest rates are too low, while a growing proportion believe the economy will worsen over the next year
UK government rules out 'sterling zone' with independent Scotland
Scotland will face significant challenges in setting up its own currency, establishing a currency board or joining the euro as an alternative to sterling
Countercyclical prudential policies have ‘important implications' for monetary policy
Using a countercyclical macro-prudential instrument in addition to manipulating interest rates improves welfare, IMF paper finds
IMF mission to Iran urges monetary tightening to ‘entrench' recent disinflation
Article IV statement calls for simplified central bank mandate and greater focus on price stability; says new authorities are ‘well aware of challenges and need to advance reforms'
Nigerian interest rates have 'weak effect' on real economy, CBN working paper finds
Paper examines the process by which Nigerian interest rate policy affects the structure of interest rates, credit, aggregate demand and output production
Orthodox Banxico policies ‘paying off' amid emerging market volatility
Loose monetary policy in Mexico has been made possible by progress on inflation anchoring, according to bank's quarterly report
One in five in UK 'aware of forward guidance'
Policy may indirectly affect households' interest rate expectations and spending through media reports and effects on business spending, according to report
IMF sees ‘limited scope’ for RBA rate cuts
Article IV staff report says Reserve Bank of Australia’s accommodative monetary policy is ‘broadly appropriate’ but warns the central bank could struggle to offset further shocks
Bank of England unveils forward guidance ‘phase two'
The current policy will be scrapped when UK unemployment reaches the bank's 7% threshold ‘in the coming months' in favour of a less easily defined version aimed at reducing labour market slack
Mauritian governor calls for RBA-style capitalisation
Rundheersing Bheenick says the Bank of Mauritius should receive a stock of government debt it can use to mop up the excess liquidity in the banking system caused by its FX interventions
Kazakhs let currency fall 19%
National Bank of Kazakhstan points to the Fed taper and ‘uncertainty’ around the exchange rate of the Russian ruble as the main motivations for devaluing the tenge
Yellen says labour market recovery ‘far from complete' in first appearance as chair
New Fed chair says she expects ‘a great deal of continuity in the FOMC's approach to monetary policy' going forward; downplays unemployment rate for evaluating labour market conditions
ECB monetary policy is feeding through to real economy, says Mersch
Executive board member also underscores importance of cleaning up banks' balance sheets and 'encouraging alternative funding sources', as low interest rates 'cannot raise growth on a structural basis'