Monetary Policy
BoE makes gains on QE assets
Bank of England’s Asset Purchase Facility Fund reports £9.8 billion increase in value of balance sheet; gains channelled to UK government in form of indemnity
BoJ minutes highlight concerns over shortage in nuclear energy
Bank of Japan minutes warn delay in resumption of nuclear energy plants may require more 'conservative' growth forecast
Kenya reverses rate decision
Central Bank of Kenya reverses earlier rate increase on overnight discount rate but imposes restrictions on its discount window; analysts say measures amount to tightening in monetary policy
ECB paper highlights differences in EU real wage flexibility
European Central Bank study shows real wages are more flexible in Central and Eastern European economies than euro area countries
Markets respond positively as Bernanke says US is ready to act
Federal Reserve chairman Ben Bernanke says US has a “number of ways” it could ease financial conditions if necessary; markets respond postitively
St Louis Fed paper on US monetary policy and global output gaps
St Louis Federal Reserve study says there is not sufficient empirical evidence to suggest US monetary policy should focus on global output gaps
Iceland paper reviews monetary policy in turbulent times
Central Bank of Iceland study shows banks’ price setting behaviour and inflation expectations have been negatively impacted by banking crisis
BoE identifies deficiencies in central banks’ monetary policy frameworks
Bank of England deputy governor Charlie Bean says central banks must review their monetary policy frameworks to include a more prominent role for financial intermediaries
IMF paper on leaning against the wind in Latin America
Fund study says countercyclical instruments are an effective tool to restrain excessive credit growth in Latin American countries
Fed's Hoenig warns of risks from late rate rise
Kansas City Federal Reserve president Thomas Hoenig urges Federal Open Market Committee to begin moving out of very accommodative monetary stance
Standard monetary policy rules don’t apply in liquidity traps: Dallas Fed
Dallas Federal Reserve study shows monetary policy should be complemented with fiscal policy in order to shift aggregate demand out of a liquidity trap
Costs to bank funding not fully passed on to markets: Norges Bank paper
Norges Bank study finds evidence of incomplete pass-through of banks’ funding costs on deposit rates in Norway
ECB rate hike highlights continued divergence with BoE
European Central Bank raises interest rates by 25 basis points as Bank of England holds for 28th month in a row; more expected from Frankfurt in 2011
China’s July rate hike will be last for 2011, say analysts
Analysts say slowdown in growth suggests People’s Bank of China will not hike rates beyond Wednesday’s 25-basis-point rise
Islamic banks' return on deposits comove with conventional banks: IMF paper
Fund study says returns on deposits of Islamic banks in Turkey and Malaysia exhibit similar trends to conventional banks
Bank of Korea – Annual Report (2010)
Bank of Korea 2010 Annual Report highlights growing inflationary concerns in South Korea
NY Fed paper identifies labour slack threshold
New York Federal Reserve study says relationship between labour market slack and inflation is non-linear
Weber says heterogeneity in euro area not an issue
Former Bundesbank president Axel Weber says heterogeneity of economies not an issue in currency in St Louis Federal reserve paper
"Hawkish" Riksbank raises repo rate
Riksbank raises repo rate by 25 basis points amid growing inflationary pressures in Sweden; central bank does not alter future repo path to analysts' surprise
Dissenter calls for rate hike: Iceland minutes
Central Bank of Iceland Monetary Policy Committee minutes show one member called for a 25-basis point rate hike
QE2 is classic monetary policy: Fed’s Bullard
St Louis Federal Reserve president James Bullard says effects of quantitative easing too similar to interest rate loosening
Tucker hints at shifting BoE attitudes and policies
Paul Tucker, deputy governor at the Bank of England hints he might vote to raise interest rates; calls for new “social contract” with banks
Core inflation not best predictor of price movements: Philly Fed paper
Philadelphia Federal Reserve study shows core inflation is not as good a predictor of future inflation as policymakers claim
Kenya overnight lending rate leaps in unscheduled move
Overnight lending rate raised to 8%, 175 basis points above the benchmark central bank rate