Monetary Policy
Communication key in inflation targeting
Communication is crucial in limiting the damage to central bank's credibility associated with overshooting inflation targets, notes a new paper from the International Monetary Fund.
New model for anticipated structural changes
New research from the Reserve Bank of Australia develops a model that is relevant for monetary policy which can allow for anticipated structural changes.
Chile surprises with one-point cut
The Central Bank of Chile surprised observers and markets with the size of the reduction in borrowing costs as data revealed that inflation plunged almost two percentage points in December.
Peru holds rates, eases reserve requirements
The board of the Central Reserve Bank of Peru held rates at 6.5% as inflation slowed but lowered reserve requirements by one percentage point in a bid to ease conditions for in for commercial banks.
Banco de la Republica, Colombia - minutes
The board of directors of the Banco de la Republica, Colombia decided unanimously to cut the intervention rate by a half a basis point to 9.50%, the minutes of the 19 December meeting show.
UK rates hit all-time low
In a widely expected move, the Bank of England lowered its policy rate to 1.5%, the lowest in the institution's 300-year history.
Latvia breached euro budget rules - central bank
Latvia's fiscal deficit for 2008 was in excess of the 3% Maastricht criterion for euro entry, the Bank of Latvia has said, taking issue with the government's figure of 2.8%.
Trichet defends summer rate hike
The European Central Bank (ECB) was right to raise rates by a quarter point in July as long-term inflation expectations threatened to become unanchored, Jean-Claude Trichet, the president of the European Central Bank, has said.
Fed justifies move to target range
The Federal Open Market Committee (FOMC) shifted from a key rate towards a target range owing to a lack of control over overnight market rates and to highlight the need to step up quantitative easing, the minutes of its December meeting reveal.
Unexpected cuts highlight Asian export slump
The Taiwanese and Indonesian central banks surprised markets with rate cuts on Wednesday, both made as evidence mounted that 2009 will be a tough year for Asian exporters.
Fed not out of ammo, says SF's Yellen
The Federal Reserve still has the tools to stimulate the economy even with interest rates at next to zero, said Janet Yellen, the president of the San Francisco Fed.
Hungary likely to miss inflation target - governor
Hungary's central bank is likely to undershoot its inflation target, admitted the governor, Andras Simor.
Lower inflation gives Manila scope to cut
Inflation in the Philippines fell by almost two percentage points, affording the central bank the opportunity to consider cutting rates further.
Romania's Isarescu on euro adoption
Romania's objective of joining the euro area in 2014 is within reach, said Mugur Isarescu, the governor of the National Bank of Romania.
Balassa-Samuelson revisited
A new paper from the Bank for International Settlements finds that Balassa-Samuelson effects are clearly present in 11 euro accession countries and that these explain around 24% of inflation differentials vis-a-vis the euro area.
MPC minutes: Egypt
The Central Bank of Egypt's Monetary Policy Committee decided to keep rates unchanged at 11.5% owing to high inflation, the minutes of the meeting on 25 December explained.
India's central bank cuts again
The Reserve Bank of India cut rates by a percentage point for the second time in less than a month and eased deposit requirements for commercial banks in a bid to limit the impact of the financial crisis.
Polish policymaker flags half-point cut
Marian Noga, often portrayed as a hawk on the National Bank of Poland's ten-member rate-setting panel, said rates could be lowered by half a percentage point at the next meeting.
Korean rate setting to focus on recovery
Monetary policy will be geared towards restoring economic growth the Korean central bank said in a statement on monetary policy for 2009.
Chilean paper on inflation persistence
This paper measures persistence of inflation in Chile and finds that it has increased sharply in recent years.
Iraq to cut rates
The Central Bank of Iraq has announced that it will reduce its key policy rate by 1 percentage point to 14%, starting next year.
Poland slashes on signs of sharp slowdown
The National Bank of Poland made its steepest cut since January 2001 on Tuesday and cautioned that the country's economy was set for a sharper-than-expected slowdown.
China bids to breathe life into ailing economy
The People's Bank of China has cut its key lending and borrowing rates for the fifth time in three months in its quest to shore up faltering growth in the world's fourth largest economy. However, the move met with disappointment from market participants,…
Fed further opens lending window
The Federal Reserve has announced a new lending facility that will allow an even wider range of institutions - including hedge funds - to access loans by the central bank.