Monetary Policy
Brazil close to limit of monetary easing – minutes
Rate-setters stress new interest rate cuts could imperil financial stability
NY Fed economists weigh in on yield curve control debate
Jury still out on Japan’s measures to control yield curve but there is “one clear benefit”, researchers say
Paraguay cuts rates to 0.75%
Economic activity declined significantly in April, central bank reports
Weidmann to testify quarterly in parliament to explain ECB policy
Measure follows constitutional court ruling requiring ECB to demonstrate proportionality of government bond purchases
Brazilian central bank cuts rates to record low
MPC says “remaining space for monetary policy stimulus is uncertain”
Chilean government wants to give central bank QE powers
Draft law would allow Central Bank of Chile to buy government debt in “exceptional circumstances”
PBoC will not engage in monetary financing, Guo says
Senior central bank official says China will not monetise deficits or use negative interest rates
BoE expands asset purchases by £100 billion
Haldane casts sole vote against expansion as ex-MPC member Sentance warns of “autopilot”
Namibia’s central bank cuts rates to record low
Central bank acts to preserve link to South African currency as it reintroduces lockdown measures
Bank Indonesia cuts rate for the third time this year
Governor hints that further cuts may come while analysts warn economy may shrink further
Costa Rica cuts rates to lowest level in over 10 years
Covid-19 has accelerated a disinflationary trend, central bank says
Central Bank of Chile steps up unconventional policies
Asset purchase programme and funding available to banks set to reach 10% of GDP
US economy entering ‘bounce back’ phase – Powell
Fed chair forced to defend move to follow through with corporate bond purchases in Senate hearing
Should the BoE go negative?
Much research into negative rates suggests central banks should have little to fear
Israeli governor reflects on response to Covid-19
Bank of Israel started government bond purchases and dollar-shekel swaps to boost liquidity
Fed poised to purchase corporate bonds next week
New York Fed will create a portfolio to track the US corporate bond market under new plans
Sarb introduces collateral substitution for repos
New framework designed to give banks more flexibility in managing collateral
Iran’s race towards monetary policy reform faces high hurdle reality
Majlis’s Tohid Atashbar writes that the central bank’s new inflation targeting approach may struggle to deliver
US citizens think Fed’s communication strategy needs adapting – Fed report
“Fed Listen” events revealed a lack of understanding about inflation targeting, report shows
High US inflation should not be ruled out
A prolonged health crisis raises the risk that hidden inflationary pressures could be stoked
Solomon Islands central bank cuts reserve requirements
Reducing requirements will ensure ample liquidity is provided to banking sector, central bank says
Fed policy is too tight given FOMC projections – former Fed economist
“An outlook that bad for that long is a clear sign that policy is too tight,” Joseph Gagnon says
New York Fed to tighten repo operations
Fed sees “substantial improvements” in dollar funding markets