Monetary Policy
Risk of inflation de-anchoring is higher in US than Canada – study
Authors say risk has also risen for both countries post-Covid
European Central Bank continues easing with 25bp cut
Revised forecast points to stunted growth, as Lagarde says bank is operating in “high uncertainty”
Disinflation is still on track, BoE governor insists
Officials tell UK parliament that success so far does not mean mission is complete
Turkey cuts rates as official inflation figure dips below 40%
However, level of price rises remains well above central bank’s 5% target
BIS paper explains monetary policy’s impact on long-run rates
Authors say “forgiving” economy allows central bankers to set policy without clear view of r*
PBoC adviser calls for new tools to boost consumption
Senior official recommends “structural” monetary policies as annual political meetings kick off
The interest rate dilemma in an uncertain world: a balancing act
Biagio Bossone makes the case for a holistic policy approach that includes extending IT tolerance bands, smart fiscal policies, supply-side reform and financial safeguards
Tighter policy in 2021 would have had ill effects – NY Fed study
Authors argue inflation would have fallen only modestly while global demand would have suffered
Consumption by rich fell sharply post-tightening – CBRT study
Research by Turkey’s central bank finds rate hikes caused wealthy to spend less and save more
Thailand unexpectedly cuts rates as growth poised to slow
Domestic manufacturing sector faces “intense competition” from abroad, BoT says
Bank of Israel holds rates ahead of budget approval
Decision follows rise in inflation, driven by tax rises to fund ongoing military operations
Bank of Korea resumes easing and lowers GDP forecast
Cut of 25bp aimed at boosting economy as country grapples with US tariffs and domestic political drama
Tariffs will induce structural change in Canada – Macklem
Increased trade frictions with US will hurt country’s economy but represent “new reality”, says governor
Egypt holds rates at 27.25%
Central bank projects gradual decline in inflation, but points to upside risks from US tariffs
Upside risks from Trump tariffs prompted Fed to hold rates
FOMC minutes show that January’s decision was partly informed by potential changes in US trade policy
China holds loan prime rates
PBoC stays put again as yuan strengthens after Trump signals potential trade talks with Xi
ECB board members express regret over QE stimulus
Cipollone says unwinding balance sheet thwarts rate cuts, while Schnabel wants “less activist” bank
Bank Indonesia holds rates at 5.75%
Central bank faces dilemma of whether to prioritise bolstering growth or propping up currency
New Zealand continues easing cycle with 50bp cut
Trade concerns take centre stage as RBNZ delivers fourth consecutive reduction
Australia cuts rates for first time since 2020
RBA delivers long-awaited 25bp reduction but says markets are overconfident about further easing
EMs resilient to US monetary spillovers, panellists say
Turkish and Thai governors discuss policy challenges at IMF conference in Saudi Arabia
Bank of Russia holds rates
Inflation ticks up as central bank updates forecast again
China to make use of all monetary tools to boost growth
PBoC flags external volatility and renews pledge to support economy in quarterly report
Rwanda holds rates at 6.5%
Central bank expects inflation to remain within target