Monetary Policy
Changing balance sheet composition mostly reflects normalisation
Gold buying and FX interventions drive changes in some jurisdictions
Fed cuts rates with dissenting votes in both directions
Risks to employment and prices split FOMC three ways
Bank of Canada makes modest rate cut
Economists disagree over wisdom of decision at time of above-target inflation and soft labour markets
Give BoJ policy space to fight inflation, says Bessent
US Treasury secretary hints at preference for rate hikes before Japan’s central bank meets
Inflation targeters mainly use corridor systems to set interest rates
But many central banks with exchange rate controls also use corridor systems
PBoC to resume open market China bond trading
Analysts expect purchases by central bank to support liquidity and government fiscal policy
Policy impact widely gauged by macro and market indicators
Policy-making frameworks commonly reviewed on ad hoc basis
Miran threatens Fed independence and lacks credible analysis, say experts
Economists disagree with governor's assessments of neutral rate and forthcoming inflation
Quarter of central banks have government reps on MPC
Only one such committee publishes policy-makers’ votes
Half of central banks offer no forward guidance
MPCs that meet at above-average frequency less likely to observe blackout period
Career concerns can lead to better FOMC voting – NBER paper
Study examines range of biases among Fed decision-makers
MPCs with more frequent meetings tend to be more transparent
Just under three-tenths of central banks publish current level of r-star
BoK holds policy at 2.5% and signals room for further cuts
Rhee Chang Yong says four of six board members open to cutting to 2.25% over next three months
ECB and BoJ officials reject explicit forward guidance
Central bankers promote ‘meeting-by-meeting’ approach to rates setting
Geopolitics and supply shocks top monetary policy risks outlook
Risk factors vary by nominal anchors and geographical regions
US inflation regime persistently above target now – Fed economist
Price rises are broad-based and have significantly impacted expectations says researcher
Committees of exchange rate targeting central banks meet most often
Inflation targeters have the average highest number of committee members
Venetian lessons for today’s central bankers
Loose money and lost credibility in 17th century city state provide a cautionary tale about the importance of international investor confidence, argues Biagio Bossone
Targeted liquidity facilities decline year on year
Lending to small businesses and other goals are top criteria for access
Central bank watch: Measured moves
Franklin Templeton analysts assess the monetary policy outlook for the G10 central banks, plus China, India and South Korea
BoE paper offers methods for policy-making under uncertainty
Forecast-based, news-based and rules-based methods can be used together, authors say
Central banks’ asset purchase programmes thin out further
One in five inflation targeters still use scheme, but most plan to taper purchases