Monetary Policy
Canada's inflation success down to more than luck
The price level in Canada has strayed little from the path implied by the 2% inflation target because expectations and interest rates are determined in a way that is consistent with price-level-path targeting, research published by the international…
Eurozone inflation hits record high
Eurozone inflation has climbed to its highest level since the European Central Bank was founded in 1999, an early estimate shows.
Philippines lowers rates to 5%
The Central Bank of the Philippines's rate-setting monetary board on Thursday cut its key policy rate by a quarter-point to 5%.
Fed faces uncertain times and difficult decisions
Stephen Cecchetti, the Rosenberg professor of global finance at the Brandeis International Business School, discusses why the outlook for the United States economy is so hard to call and if the Federal Reserve was right to cut rates.
Joint rate moves have little benefit
The gains from monetary policy coordination in the United States and the eurozone are small, research published by the European Central Bank finds.
South Africa holds rates
The South African Reserve Bank's rate-setting board voted on Thursday to hold rates at 11%.
Pakistan rates up by half a point
The State Bank of Pakistan's rate-setting board has raised its benchmark interest rate by 50 basis points to 10.5%.
Poland raises rates to 5.25%
The National Bank of Poland's rate-setting monetary policy council opted to hike its benchmark reference rate by 25 basis points on Thursday.
Instant cuts the right response to instability
Monetary policy that responds instantly to increased credit risk performs better than a policy that follows the traditional Taylor rule, research published by the International Monetary Fund finds.
SARB may hold rates
Recent power shortages may lead to a rethink on rate rises in South Africa.
Fed cuts rates by half a point
The Federal Open Market Committee voted on Wednesday to lower rates by 50 basis points to 3%.
Markets expect half-point cut from Fed
The majority of analysts expect the Federal Reserve to cut rates by a further half-a-percentage point on Wednesday.
Malaysia keeps rates at 3.5%
Bank Negara Malaysia's rate-setting monetary policy committee voted to hold its benchmark overnight policy rate at 3.5% on Monday in spite of concern over inflation.
UK rates "restrictive", says dovish Blanchflower
David Blanchflower, the only member of the Bank of England's nine-strong monetary policy committee (MPC) to back a rate cut earlier this month, has said monetary easing is vital to avoid a recession.
Israel holds rates at 4.25%
The Bank of Israel's rate-setting board voted on Monday to keep rates at 4.25%, despite concern over rising inflation.
New Zealand's Bollard warns on inflation risks
A number of international price shocks are posing a threat to price stability in New Zealand, said Alan Bollard, the governor of the central bank.
Fukui reviews Japanese monetary policy
Japan's economy is expected to continue expanding moderately, although for the time being the pace of growth is likely to slow because of sluggish housing investment, said Toshihiko Fukui, the central bank governor, paving the way for possible rate hikes.
Japan cut unlikely after Fukui comments
A slowdown in Japanese growth will not lead to a rate cut, Toshihiko Fukui, the governor of the Bank of Japan indicated on Friday.
Japan's hawk turns dove after building slump
Atsushi Mizuno, the only member of the Bank of Japan to consistently back a rate hike during the second half of last year, changed tack in December due to the poor performance of the construction sector, minutes from the monetary policy meeting reveal.
The optimal horizon for inflation targeting
The optimal horizon for inflation targeting is highly shock-specific, research published by the Central Bank of Norway finds.
ECB sticks to inflation line amid OECD cut calls
Jean-Claude Trichet, the president of the European Central Bank, and fellow members of the rate-setting governing council have defended the central bank's decision to fight inflation, in spite of increasingly vociferous calls for them to cut rates.
New Zealand holds rates at 8.25%
The Reserve Bank of New Zealand's rate-setting board voted on Thursday to keep the benchmark official cash rate at 8.25% in spite of high inflation.
Brazil rates remain at 11.25%
The Central Bank of Brazil's rate-setting board on Wednesday voted unanimously to keep the benchmark Selic rate at 11.25%.
UK's King unlikely to take Fed tack on rate cuts
Mervyn King, the governor of the Bank of England, signalled he would prefer a gradual decline in rates on Tuesday in a speech that noted the risks to inflation as much as those to growth.