Monetary Policy
Forward guidance ‘partly to blame’ for inflation – panel
ECB should do more scenario planning, revise collateral rules and incorporate Taylor principles
ECB framework needs ‘few tweaks’ – panellists
Digital euro is “even more important” in the wake of Trump CBDC ban, says BdF governor
Bank of Canada cuts rates by 25 basis points
Monetary policy “cannot offset the impacts of a trade war”, says central bank
Ueda reaffirms BoJ’s exit from controlling long-term rates
Governor says surging bond yields are natural reflection of market expectations
Rates should stimulate economy in response to tariffs – study
Optimal monetary policy promotes employment and income, Minneapolis Fed paper argues
‘Trump slump’ hedges rise on rate cut fears
One dealer notes five-fold increase in number of clients hedging against possibility of faster easing
Pakistan pauses easing cycle after six consecutive rate cuts
Central bank says high core inflation could still drive up overall price levels, despite fall in headline figure
MNB to follow ‘disciplined, patient policy’ – new governor
In first speech since taking office, Varga says bank will closely monitor food and service inflation
Bank of Israel responds to criticism over high rates
Chair of parliamentary committee had blamed tight policy for lenders’ excess profits
Risk of inflation de-anchoring is higher in US than Canada – study
Authors say risk has also risen for both countries post-Covid
European Central Bank continues easing with 25bp cut
Revised forecast points to stunted growth, as Lagarde says bank is operating in “high uncertainty”
Disinflation is still on track, BoE governor insists
Officials tell UK parliament that success so far does not mean mission is complete
Turkey cuts rates as official inflation figure dips below 40%
However, level of price rises remains well above central bank’s 5% target
BIS paper explains monetary policy’s impact on long-run rates
Authors say “forgiving” economy allows central bankers to set policy without clear view of r*
PBoC adviser calls for new tools to boost consumption
Senior official recommends “structural” monetary policies as annual political meetings kick off
The interest rate dilemma in an uncertain world: a balancing act
Biagio Bossone makes the case for a holistic policy approach that includes extending IT tolerance bands, smart fiscal policies, supply-side reform and financial safeguards
Tighter policy in 2021 would have had ill effects – NY Fed study
Authors argue inflation would have fallen only modestly while global demand would have suffered
Consumption by rich fell sharply post-tightening – CBRT study
Research by Turkey’s central bank finds rate hikes caused wealthy to spend less and save more
Thailand unexpectedly cuts rates as growth poised to slow
Domestic manufacturing sector faces “intense competition” from abroad, BoT says
Bank of Israel holds rates ahead of budget approval
Decision follows rise in inflation, driven by tax rises to fund ongoing military operations
Bank of Korea resumes easing and lowers GDP forecast
Cut of 25bp aimed at boosting economy as country grapples with US tariffs and domestic political drama
Tariffs will induce structural change in Canada – Macklem
Increased trade frictions with US will hurt country’s economy but represent “new reality”, says governor
Egypt holds rates at 27.25%
Central bank projects gradual decline in inflation, but points to upside risks from US tariffs