Monetary Policy
Book notes: The long journey of central bank communication, by Otmar Issing
This book is a “masterly exposition on central bank communication, its evolution and continuing challenges”
European companies’ credit demand shrinks despite ECB stimulus
In Q4 2019, credit demand from non-financial corporations declined for first time in six years
Atlanta Fed research offers 17th century lessons for proposed standing repo facility
Crises can pose demand and credibility challenges, researchers warn
Fed slims down repo market interventions
Relative to year-end, the Fed will cut $250 billion of the cash offered to banks
ECB willing to provide further stimulus – minutes
Governing council stresses inflation remains below its medium-term goal
South Africa surprises markets with rate cut
Sarb reduces interest rates by 25 basis points to 6.25%
Turkish central bank makes fourth rate cut in six months
Central bank has reduced rates by 850 basis points since president dismissed last governor
Regional Fed presidents warn asset purchases are creating risks
Robert Kaplan expresses concern over Fed’s response to market funding pressures
Central banks must learn lessons of BoJ’s inflation target rise – Fed paper
Failure to hit old targets and disagreement among policy-makers will harm credibility, paper argues
BoE officials hint at willingness to cut rates
Carney, Saunders and Vlieghe all signal cut may be needed, as UK growth and inflation disappoint
ECB paper looks at role of uncertainty in central bank comms
Researchers use machine learning to study market reactions to BoE inflation reports
Fed to wean banks off daily repos later this year
Total reserves may need to be higher than Fed initially judged as demand for repo operations remains strong
Argentina reduces key rate floor again
New governor thinks ultra-tight financial conditions failed to tackle high inflation
Carney launches review of BoE monetary policy
“Deep structural changes” have left little space for conventional tools to work, governor says
Riksbank minutes show disagreements over December rate hike
Dissenting board members cite looser international policy, weak growth and below-target inflation
Phillips curve still explains eurozone inflation movements – research
Results may become a focal point of debate in the forthcoming ECB strategy review
New York Fed launches longer-term liquidity fix
Markets desk tells overseas central banks that foreign repo pool rate will be revised
Bank of Thailand grapples with baht appreciation
Central bank has relaxed forex regulations and cut rates as baht hits six-year high
New CBSL governor targets transmission mechanism
Priorities for 2020 include tackling bottlenecks, boosting transparency and improving analytics
Higher oil prices dampened impact of Fed spillovers in Gulf – IMF paper
Changes in Fed rates likely to have minimal impact on GCC growth with current oil prices, researchers say
Lagarde awards Schnabel key policy role in renewed ECB board
Panetta leads market infrastructure and payments, banknotes and international relations
BoE paper: simple communication can backfire
Success of communication is not measured by number of people reached, paper states
Bernanke offers ideas for Fed’s policy framework review
Unconventional policies are “preferable” to raising inflation target and can still be enhanced, Bernanke argues