Monetary Policy
Fed researchers find little QE impact on emerging market capital flows
Discussion paper finds Fed’s quantitative easing has not had a statistically significant impact on net capital flows to emerging markets, although behaviour changed post-crisis
'Furious' jobs increase boosts Bank of Canada’s Poloz
Statistics Canada reports increase of 95,000 jobs in May; Poloz uses first speech in role to call for economic rebalancing and issue warning over low inflation
Japan government pension fund re-jig could see BoJ pick up $80bn in JGBs
Japan’s sovereign welfare fund signals could sell up to ¥8 trillion worth of domestic bonds; BoJ could potentially absorb them as it seeks to drive up the country’s monetary base
IMF paper explores link between low interest rates and bank risk-taking
Working paper finds banks take more risks in low short-term interest rate environment; more so if they are well capitalised
ECB keeps SME measures ‘on the shelves’ and holds rates alongside BoE
Draghi says further unconventional measures were discussed at today’s meeting of the governing council, but are being held in reserve; ECB joins Bank of England in taking no policy action
Reserve Bank of Australia holds rates as exports drive growth
RBA decides against further cuts, as exchange rate converges on terms of trade and exports drive economic growth
Latvia to adopt euro in 2014
European Commission gives Latvia the green light to become eighteenth eurozone member after it comfortably meets convergence criteria, but ECB voices concerns over price and financial stability
Fischer gives high marks to Bernanke and Draghi
Outgoing Bank of Israel governor Stanley Fischer believes the world owes a great debt to Fed chairman Ben Bernanke and praises ECB president Mario Draghi; says Israel can live with side effects of QE
Bank of Israel’s outgoing chief, Stanley Fischer, on the challenges of central banking
Stanley Fischer believes his work as governor of the Bank of Israel is done. He tells Chris Jeffery about the reform process in Israel as well as the challenges facing the world economy and the IMF
Price stability ‘pivotal’ in shaping exchange rate pressures
Bank of Finland discussion paper analyses pressure on exchange rates during financial crisis; says countries that experienced high inflation beforehand were hardest hit
Brazilian currency must adapt to 'new reality', says deputy governor
Talk of an end to Fed QE is creating a 'new reality' for other currencies, as capital begins to flow back to the US; BCB will intervene if it sees the real diverging from a basket of currencies
Croatian governor cautious over banking union
Boris Vujčić says Croatia will adopt the euro "as soon as possible" after it joins the European Union next month; raises concerns over banking union and ECB’s lack of supervisory experience
Caruana warns of yield curve 'global steepening'
BIS general manager Jaime Caruana says central banks must consider the effect on global bond markets of rising rates and shrinking balance sheets
Pianalto says financial regulation should learn from monetary policy transparency
Financial regulation can benefit in the same way as monetary policy has from transparency and forward guidance, says Cleveland Fed president Sandra Pianalto
BoE reveals £300 million drop in FLS lending
Banks participating in FLS scheme reduced their net lending by £300 million in the first quarter of 2013; Bank of England predicts ‘gradual’ increase throughout year
Kansas City Fed article finds markets anticipated QE announcements
Article in the Federal Reserve Bank of Kansas City’s latest economic review says that markets foreshadowed changes in asset purchase programme; may have affected long-term interest rates
BIS warns central bank easing is fuelling equity markets
The latest quarterly review released by the Bank for International Settlements (BIS) finds that markets are ‘under the spell’ of central banks
IMF gives its verdict on Abenomics
Article IV statement gives ringing endorsement to QQE in Japan; says ‘spillovers' may have adverse near-term effect on neighbours, but will be offset by benefits of economic strength in Japan
Bank of Greece report optimistic that banking sector has ‘weathered the storm’
Monetary policy report for 2012-13 says confidence is gradually returning as banks make repairs, deficits are reduced and the stabilisation programme remains ‘well on track’
IMF paper dissects 'remarkably stable’ US inflation
Working paper examines factors behind favourable inflation performance in the US following the Great Recession, identifying three main causes
Pressure builds on ECB as figures show no lending growth
OECD and the European Commission call on the European Central Bank to do more, as ECB figures show lending to the eurozone's productive economy continues to shrink
Bank of Thailand rate cut aims to boost demand, not weaken baht
BoT makes clear its move was driven by disappointing economic growth, and not aimed at weakening the currency as the government would like
Israel cuts rate for second time in two weeks
Bank of Israel cuts benchmark interest rate by 25 basis points for second time this month as global monetary easing ‘accelerates’
Discontent on BoJ board over monetary policy outlook
Three board members suggest changes to the wording of the outlook for economic activity and prices as fears emerge over effects of continued QE; Kuroda and Miyao upbeat in separate speeches