Expectations
How central bank mistakes after 2019 led to inflation
Central banks must acknowledge their own mistakes and outline concrete steps to restore the public’s confidence in their ability to ensure price stability, write Graeme Wheeler and Bryce Wilkinson*
Czech central bank halts tightening
Many had expected new governor and board to take dovish turn
ECB paper examines unanchored inflation expectations
Public reacts more strongly to larger and downward inflation surprises, researcher finds
Rates round-up: Latin American central banks battle persistent inflation
Colombian, Dominican and Nicaraguan central banks hike rates as inflation stays high
Uzbekistan lowers key rate by 100bp
Central Asian country follows Russia in reversing rate increases from start of invasion of Ukraine
US experts believe inflation will fall, eventually
CPI inflation surges above consensus forecasts, but economists expect a turning point soon
Rising inflation still stalks major Latin American economies
Tighter monetary policy in Brazil, Chile and Mexico is failing to bring inflation down
BoE’s Pill says focus is on slower-moving elements of inflation
Policy-makers trying to walk “narrow path” as they resist second-round effects of high inflation
Bank of Canada deputy stresses heterogeneity’s role in monetary policy
Debt may complicate tightening cycle, as Canadian consumer inflation expectations rise
Bank of Jamaica continues tightening cycle
MPC adds 50bp, describing May inflation drop as mainly due to “temporary effects”
Riksbank carries out largest rate rise since 2000
Swedish central bank says chances of wage-price spiral have increased
Bank of Mexico orders largest-ever rate hike
Mexico matches Fed as inflation continues well above target
Exit from bond yield target was ‘disorderly’, admits RBA
Central bank says it is unlikely to use yield curve targeting again
Brazil’s MPC continues hikes, but slows pace
Central bank orders eleventh consecutive increase, and says it expects more, but smaller, rises
Banknotes: April to June 2022
A round-up of news and salient issues that have affected central bankers in the past three months
BoE opts for 25bp hike as growth disappoints
Weakening economy and high inflation leave policy-makers divided
Fed meets inflation surge with 75bp hike
Unexpected spike in inflation and expectations spurs committee into rare policy aggression
Rates round-up: Peru, Poland and Serbia tighten policy
Moldovan central bank faces commission of inquiry; Uzbekistan partially unwinds earlier hike
US inflation expectations inch higher
New York Fed survey finds rise in expectations at one-year horizon, but not at longer term
CBDC and bank intermediation in the eurozone
An assessment of the impact different ‘digital euro’ designs related to remuneration and usage limits could have on the banking system, including during times of stress*
Paper explains why ‘Fed put’ is not as reliable as investors might like
Disagreement between Fed and market can create perception central bank is “behind the curve”
Rates round-up: Israel surprises with larger hike
Central banks in Pakistan, Nigeria, Ghana, Paraguay and Jamaica also tighten policy
Central banks use wide array of external comms channels
Institutions employ about 10 media formats on average, and almost all use social media
Czech board raises rates in split vote
Central bank increases inflation forecast and awaits new governor appointment