Monetary Policy
New insights on monetary policy
Monetary policy can, contrary to received wisdom, be forward looking without compromising stabilisation, finds a new European Central Bank paper.
BoE holds rates at 5.25%
The Bank of England has opted to keep rates on hold, as expected, following last month's cut and relatively favourable data on growth.
Near-term cut unlikely as ECB takes neutral tone
Jean-Claude Trichet, the president of the European Central Bank (ECB), signalled that the governing council is unlikely to back a rate cut in the coming months.
New Zealand holds rates at 8.25%
The Reserve Bank of New Zealand kept rates unchanged for the seventh straight month.
Price-level-path targeting would suit Canada
Simple price-level-path targeting performs slightly better than simple inflation targeting when the Canadian economy is confronted by shocks, states a new Bank of Canada research.
Ex-governor knocks RBA as rates hit 12-year high
Bernie Fraser, a former governor of the Reserve Bank of Australia, has spoken out against the decision to raise rates to a fresh 12-year high.
Canada chops half a point off rates
The Bank of Canada has cut rates by 50 basis points to 3.5% amid fears of a more severe slowdown in the US.
Strauss-Kahn complains of "overly powerful" ECB
Dominique Strauss-Kahn, the managing director of the International Monetary Fund, has said that the lack of a political counterweight for the European Central Bank (ECB) has made the institution too powerful.
Simply the best for policy, says Fed's Plosser
Simple rate-setting rules based on publicly observable information are the best to use, said Charles Plosser, the president of the Philadelphia Federal Reserve.
Fed auctions to run into March
The Federal Reserve is set to continue its Term Auction Facility operations into March, pledging another $60 billion to alleviate money market tensions.
China’s monetary mandarins
The ever-increasing importance of China’s economic policymakers has led to intense scrutiny of the people behind the headlines. Andrew Peaple profiles the most important players
Japan's Mizuno dismisses rate cut calls
Atsushi Mizuno, a member of the Bank of Japan's rate-setting council, has said a rate cut would be unjustified even on signs that the world's second-largest economy is slowing.
Czech deputy counters interference claims
Miroslav Singer, a vice-governor at the Czech National Bank (CNB), has rebuffed claims that the Vaclav Klaus, the country's president, is compromising the institution's independence.
Fed exacerbating stagflation risk: Meltzer
The Federal Reserve's current policies mark a return to the dark days of the 1970s and carry the same threats, says Allan Meltzer, a professor at Carnegie Mellon University.
Policy shifts improved inflation outlook
The decline in the level, persistence and volatility of inflation across industrialised countries since the mid-1980s is due in part to improvements in monetary policy, finds a Bank of England working paper.
Bernanke changes tack, cautions on inflation
Ben Bernanke, the chairman of the Federal Reserve, has said that the inflation picture in the US has worsened since the Federal Open Market Committee (FOMC) last met.
Markets underestimate ECB's inflation fears
Bets on interest rate decisions fail to take into account the seriousness of the inflation situation in the eurozone, said Axel Weber, the president of the Bundesbank who also sits on the European Central Bank's (ECB) governing council.
Poland raises rates to 5.5% in surprise move
The National Bank of Poland has voted to raise rates unexpectedly by a quarter point.
Further Fed cuts likely on Kohn comments
Donald Kohn, the vice chairman of the Federal Reserve, has hinted that more rate cuts are needed in order to insure against an economic calamity.
Controlling inflation stabilises growth
Monetary policy's dual objectives - stabilising inflation and stabilising economic activity - complement rather than contradict one another, said Frederic Mishkin, a governor of the Federal Reserve.
Turkey reveals rationale for latest cut
The Central Bank of Turkey lowered rates for the sixth straight month in February because monetary policy still supported disinflation, the minutes of the meeting show.
Ex-minister questions Czech independence
Jan Mladek, a Czech member of parliament and former government minister, has claimed that Vaclav Klaus, the president of the Czech Republic, is abusing his power to appoint senior members of the Czech National Bank's staff.