Expectations
Anchoring expectations ‘critical’ in energy shock – BIS researchers
Most significant shock since the 90s Gulf crisis “may warrant hiking rates more quickly”
Joint US-Japan FX intervention could advance BoJ tightening
Experts say tighter policy needed to lock in yen gains over the long term
BoJ holds as yen and won both rise on suspected interventions
Japan’s central bank more hawkish than at previous meetings as it keeps rates at 1%
Bank of England keeps rates at 3.75%
Split 6–3 decision points to divisions over inflation outlook amid escalation of Iran war
Federal Reserve holds rates with three members dissenting
Hammack, Kashkari and Logan push for 25bp rise in what FOMC chair says was a collegial ‘family fight’
Monetary policy missteps more likely amid AI boom – BIS study
Authors warn uncertainty over new technology leaves traditional benchmarks vulnerable
Chile holds rates for fifth time amid Iran war escalation
Policy-makers inject caution into statement as conflict intensifies, analysts say
Juha Park on the BoK’s updated monetary policy framework
Bank of Korea’s head of monetary policy communication says pre-Shin updates align with new governor’s thinking
Kazakhstan makes surprise 25bp rate cut
Analyst says central bank is trying to signal that disinflationary measures are working
Argentina should borrow from international markets – Obstfeld
Economist calls for transition to floating exchange rate with inflation targeting
Hungary continues easing cycle with 25bp cut
Central bank says further rate cuts likely, despite inflationary impact of Iran war
China leaves LPRs on hold for 14th consecutive month
Decision in keeping with ‘moderately loose’ policy stance repeatedly outlined by PBoC officials
Everything you always wanted to know about money (but were afraid to ask)
Rupal Patel and Jack Leslie, authors of ‘Money: the inside story’, speak about how central banks can improve their comms – and credibility – by tackling popular misconceptions about how finance works
MBS convexity hedging: back with a vengeance, or ghost story?
More bonds now sit with active hedgers but market is split on whether flows can move US rates again
Shocks greater when inflation already high – BoE study
Bank publishes latest response to Bernanke review of UK monetary policy-making
Odean White on cyber, natural disasters and geopolitical risks
Bank of Jamaica’s chief risk officer discusses weather event contingency planning, the impact of ‘shocks’ on policy, being proactive on quantum, and countering phishing and AI-enabled attacks
RBNZ says New Zealand faces greater risk of persistent inflation
Central bank’s chief economist believes monetary policy may need to respond ‘more firmly’
Perception is reality when it comes to comms – BoE paper
Study finds central bank messaging rarely reaches public, though it shapes media narratives
Lagarde ‘regrets’ forward guidance and Warsh plans ‘family fight’
Fed, ECB, BoC and BoE heads discuss inflation, uncertainty, AI, stagflation and independence in Sintra
Uruguay holds rates at 5.75% for third time in a row
BCU says there is no evidence of significant second-round effects from energy supply shock
Jamaica holds rates at 5.5%
Central bank expects headline and core inflation to breach upper range of its 4–6% target
Mervyn King on his career and big ‘mistakes’
The former BoE governor speaks with Christopher Jeffery about the value of transparency, lessons from the GFC, the need to track broad money and tie short-term funding to haircut collateral, and danger presented by non-banks
Geopolitics is driving monetary policy – panel
ECB’s Vujčić points to impact of US equities, while BoE’s Taylor says uncertainty justifies rates hold
Hungary cuts by 25bp, signals more easing to come
Central bank says households’ inflation expectations have declined ‘significantly’ in recent months