Monetary Policy
Tariffs may lower the natural interest rate – research
Increased trade costs reduce demand for capital, say authors
No ‘race to the bottom’ if Fed is forced to cut – Schnabel
ECB board member says politicised US central bank would be “very disruptive”
BoJ deputy governor says policy should be tightened further
Ryozo Himino says real interest rate remains low, despite three hikes since last year
Thai central bank warns country’s SMEs vulnerable to US tariffs
Bank of Thailand monetary policy committee signals further easing likely, minutes show
A not-so-stable Genius Act?
New stablecoin rules raise monetary sovereignty and financial stability concerns
Professor says Fed must defend its post-Covid credibility
Jackson Hole speaker Emi Nakamura talks credibility, tariffs and independence
Philippines eases policy 25bp to 5% ‘Goldilocks zone’
BSP governor says one more cut likely this year as bank cites risks posed by US trade policy
Teach people monetary policy to anchor expectations – ECB paper
Experiment run at ECB visitor centre finds strong impact from education
Yield spreads of bonds held by mutual funds decline in QE – ECB paper
Bond purchase programmes compress risk premia and boost demand, research finds
BoC will continue targeting inflation at 2%, governor says
Guidance is well understood and provides stability in uncertain times, argues Canada’s Macklem
Powell indicates policy shift at Jackson Hole
The Fed chair says the balance of risks appears to be shifting; FOMC no longer plans to overshoot inflation target
Eurozone unemployment stats may understate slack – research
Authors say they have created an indicator with important monetary policy implications
RBI says its monetary framework serves India well
Central bank rejects idea of removing food from CPI index used for inflation targeting
On the eve of the Fed’s framework review
Experts speak about the Fed’s monetary strategy review, including the role of flexible average IT and the need to better communicate policy trade-offs
Riksbank holds rates, signals one more cut possible in 2025
Lacklustre economic activity and higher-than-expected inflation fail to convince bank to cut
Bank Indonesia makes second surprise rate cut
Consecutive cuts come despite strong second-quarter growth
China keeps benchmark lending rates unchanged for third month
Economists predicted hold as PBoC turns to other means for credit growth
New Zealand cuts policy rate as economic recovery ‘stalls’
Central bank cuts policy rate 25bp saying global uncertainty caused economic slowdown
Thailand and China renew bilateral currency swap agreement
Central banks agree to exchange up to 70 billion Chinese yuan over five-year period
Britain’s ‘knife-edged’ economy is dividing BoE rate-setters
Chief economist and deputy governor for monetary policy both outvoted on MPC for first time since 2007
Towards a new monetary policy framework for the AI age
AI may render the traditional monetary policy toolkit less effective and the familiar rules of engagement obsolete, argues Biagio Bossone
Financial conditions help explain policy stance in Africa – IMF paper
Study says r* is not a sufficient guide to monetary policy when transmission mechanism is impaired