Monetary Policy
Fischer defends Bank of Israel over house prices
Bank of Israel governor tells parliamentary committee the central bank's interest rate cannot serve the interests of the housing market alone
ECB cuts rates and sets up ‘task force' seeking to promote SME lending
European Central Bank cuts benchmark rate from 0.75% to 0.5% by a majority decision; Mario Draghi says has set up a ‘joint task force' with the EIB to examine ways of promoting business lending
BoJ paper creates new framework for identifying monetary policy shocks
Working paper uses TVP-VAR model to identify the impact of conventional and unconventional monetary policy shocks on the real economy at the zero lower bound
BoJ minutes show thinking behind ‘extremely aggressive' easing
Bank of Japan monetary policy committee members were determined to grasp opportunity and make a clear statement to the markets, at meeting that heralded a new era in monetary easing
Bundesbank's Nagel calls for better data on European money markets
Joachim Nagel and Carsten Hartkopf from the Bundesbank's markets department advocate money market survey to better understand monetary policy transmission and give early warning signals
Pacific island countries cannot rely on external demand
IMF office in Pacific warns island countries the impetus from growth ‘will need to come from within’; urges central banks to keep inflation in check and promote external competitiveness
Carney says inflation targeting is worth salvaging
Bank of Canada chief says central banks’ limitations were revealed by the financial crisis, but inflation targeting is still worthwhile when supplemented by forward guidance and flexibility
Bank of Thailand prepares to counter rising baht
Monetary Policy Committee agrees ‘framework for exchange rate management’, but does not yield to government demands for a rate cut
Fed opens door to further asset purchases
The Federal Reserve resists recent talk of an exit from quantitative easing by emphasising that it could yet increase asset purchases; accuses fiscal policy of ‘restraining economic growth’
Bank of Botswana delivers first rate cut since 2010
Botswana’s central bank cuts interest rate by 50bp to 9% to stimulate growth and employment despite continuing rise in inflation
Weak eurozone data add weight to ECB rate cut talk
Expectations of a rate cut mount as unemployment and inflation figures disappoint, although many question whether lower interest rates would have a significant impact
Sri Lankan inflation drops one-third in two months
Central bank reveals inflation drop for second successive month; had earlier hinted at rate cut if slide continued
MAS fears supply-side hindrance to growth and inflation
Singapore’s macroeconomic review laments ‘tepid and volatile’ growth; central bank expects moderate economic recovery and steady inflation in 2013
BoE statistics indicate gradual lending improvement
Lending targeted by funding for lending scheme continues to creep towards positive figures; large gap between lending to individuals and to businesses
New Bank of Zambia powers help tackle tax avoidance
Amendment to Bank of Zambia Act bolsters central bank's ability to monitor flows of capital in and out of the country; economists suggest money could be ‘leaking out'
Sri Lankan governor defends economy against stories of ‘economic doom and mismanagement’
Ajith Cabraal says local and foreign stakeholders are being misled over the true state of the Sri Lankan economy; central bank may cut rates if inflation continues to fall
Riksbank doves defeated on rate cuts despite broad support for easing, minutes show
Minutes reveal that despite unanimous support for ‘more expansionary’ monetary policy, majority of board members voted to hold rates due to household debt fears
BoJ board more optimistic on inflation forecast
Updated forecasts by board members show expectations creeping closer to 2% target; lack of further monetary easing disappoints markets
FDIC's Hoenig calls for more action to correct incentives for financial companies
Speech to Asian bankers in Jakarta examines role of incentives in leading to the crisis, and hampering recovery
IMF calls for unconventional measures to tackle eurozone fragmentation
David Lipton says ECB will probably have to use unconventional measures to overcome credit crunch in peripheral eurozone members
Korean economy defies won strength to return to growth
South Korean economy posts strongest quarter-on-quarter growth in two years; currency remains "moderately weaker than desirable", according to IMF
ECB annual report strikes hopeful note at end of rough year
Report highlights peak in financial market stress in mid-year, but says policy measures were effective in reducing this later in year; inflation above target and growth on downward slide
ECB says ‘difficult to do more’ as pressure mounts for more action
Further deterioration in eurozone data leads some to predict ECB rate cut at May meeting and possible SME ‘support package’; ECB executives signal action still unlikely
Bank of England ups incentives for increased SME lending
BoE in conjunction with Treasury introduces new incentives in a bid to get credit to struggling small business sector