Monetary Policy
AI productivity shock may pull inflation up or down – BoE blog
Sectoral origin and speed of change will be key factors, economists find
Reconsidering the role of money in monetary policy
Euro policy architect Otmar Issing argues that central banks must improve their flawed inflation targeting frameworks
Market reforms are about boosting policy transmission, says CBN
Changes brought in by Nigerian central bank enable individual investors to participate in OMOs
ECB speeches ‘twice as religious’ as other central banks’ – blog
Bank’s speechwriters use devotional tropes during times of crisis, LSE research finds
Kenya, Mauritius, Namibia and Uganda all hold rates
Expert says El Niño weather event likely to drive greater rate variability in 2027
Peru holds rates for eleventh time in a row
BCRP highlights risk of escalating conflict in Middle East and more severe El Niño on inflation
Comms staff need to reflect on how their messages are perceived
BoE’s Eric Tong discusses research probing how the public receives central bank messages via the media
EU banks shrug off mooted minimum reserves increase
Doubling of unremunerated reserves would curb Eurosystem losses, but banks doubt it will pass
BCB signals tighter monetary policy for longer
Policy-makers say demand-driven inflation requires monetary policy to “remain tight”
RBA remains on hold and says inflation still too high
Economists predict interest rates in Australia will stay put until mid-2027
National Bank of Romania holds rates amid political instability
Board votes to keep policy rate at 6.5%, extending two-year hold
Yield curve data can improve estimates of r* – IMF paper
Results suggest r* has risen and help explain ‘soft landings’ after inflation surge
Mexico and Nicaragua hold interest rates
Banxico revises upwards its forecast for hitting 3% inflation target; while Nicaragua expects inflation to remain “low and stable”
Czech National Bank holds rates
Board votes to keep policy rate at 3.75%, citing assessment phase
Europe’s central banks say ‘No!’ to priority Truth Social access
Monetary authorities do not see value in seeing US president Donald Trump’s posts immediately
Brazil cuts rates for a fourth time in a row
BCB’s policy statement shorter and more focused than previous decision, analyst says
Anchoring expectations ‘critical’ in energy shock – BIS researchers
Most significant shock since the 90s Gulf crisis “may warrant hiking rates more quickly”
RBI on hold as inflation climbs above target
Few signs of “generalisation of price pressures”, says Sanjay Malhotra
Sarb governor outlines cautious stance on technological change
Kganyago sets out opportunities and risks of AI and stablecoins as Sarb marks 105th anniversary
Colombia holds rates in surprise move
Banrep says Middle East conflict and El Niño could intensify inflationary pressures
Weather shocks impact the economy unevenly, study says
Central banks overlook the broader economic fallout of cold spells