Inflation targeting
Turkish governor defends policy framework
Turkey's central bank should keep its policy framework although inflation targets have been missed two years in a row, said Durmus Yilmaz, the governor.
Mixed results for inflation targeting
A study by the Bank of Canada finds that the ability of inflation-targeting central banks to hit their targets varies considerably. The study, published in the Bank of Canada's Winter Review, looked at 21 countries over the period 1990 to 2007.
Canada's inflation success down to more than luck
The price level in Canada has strayed little from the path implied by the 2% inflation target because expectations and interest rates are determined in a way that is consistent with price-level-path targeting, research published by the international…
The optimal horizon for inflation targeting
The optimal horizon for inflation targeting is highly shock-specific, research published by the Central Bank of Norway finds.
New Zealand holds rates at 8.25%
The Reserve Bank of New Zealand's rate-setting board voted on Thursday to keep the benchmark official cash rate at 8.25% in spite of high inflation.
Central banks with dual role face tough choices
Central banks, such as the Federal Reserve, with the dual mandate of maintaining price stability and economic growth, should not give equal weight to their inflation and unemployment goals, a study by the Kansas City Federal Reserve finds.
CEPR proposes solution for fiscal dilemma
Game theory and inflation targeting could provide the best solution to the problem of fiscal policy impacting monetary policy, a paper published by the Centre for Economic Policy Research (CEPR) finds.
SARB policies here to stay regardless of Zuma
Tito Mboweni, the governor of the South African Reserve Bank, moved to assure markets on Thursday night that inflation targeting would remain whether or not the South African presidency changed hands.
Central Banking in the USA
Michael Woodford talks to Malan Rietveld about how the Federal Reserve makes monetary policy
Paper on inflation targeting
This research paper shows how the inflation-targeting regimes of Australia, Canada and New Zealand, has developed over time.
Is a price or inflation target best for stability?
A paper looking at the costs and benefits of price-level and inflation targeting as tools for stabilisation policy has been published by the Bank of Canada.
Riksbank deputy notes lessons of last 40 years
Lars Svensson, a recently-appointed deputy governor at Sweden's Riksbank, offered a "selective, eclectic, and possibly controversial" collection of lessons learned about monetary policy since 1967.
South African Reserve Bank raises rates by 0.5%
The South African Reserve Bank has hiked rates to 10% to combat rising inflation.
New Zealand central bank defends policy framework
The Reserve Bank of New Zealand has published its submission to the government's inquiry into the future monetary policy framework.
Calls for New Zealand to drop inflation target
The New Zealand stock exchange operator, New Zealand Exchange (NZX), has called for on the country's central bank to abandon its strict inflation target. Michael Cullen, the finance minister, called the suggestion "very interesting and very well…
Mboweni dismisses calls for intervention
The governor of the South African Reserve Bank, Tito Mboweni, dismissed the suggestion of a group a renowned economic advisors to the government.
Bank of England leaves rates unchanged
The Bank of England today announced that it would leave its benchmark interest rate at 5.75%. The decision to hold rates steady was widely expected, though most economists expect rates to rise to 6% before the end of this year.
Chile announces first rate rise in a year
The Central Bank of Chile raised interest rates for the first time in a year and hinted that there was more to come. In a widely anticipated move, the central bank's five-strong board raised rates 25 basis points to 5.25%.
Bank of Canada raises raises rates to 4.5%
The Bank of Canada has raised interest rates by 25 basis points despite its currency's recent appreciation again the US dollar which has taken it to its strongest level in 30 years against the greenback. The Bank of Canada said economic growth and…
Czech rates on hold, hikes to follow
The Czech central bank voted 4-1 to keep interest rates on hold at 2.75% on 28 June during its monthly policy meeting. Central bank chief Zdenek Tuma said there was every reason to increase borrowing costs, but that it had not been vital that the central…
Albanian rates up by 0.25%
Albania's central bank raised interest rates by 25 basis points to 5.75% on 28 June. The central bank's governor, Adrian Fullani, said the risk of inflation had grown stronger lately, prompting the central bank's board of directors to act.
Rates on hold in Chile
Chile's central bank held its overnight lending rate unchanged for a fifth month in a row, but suggested that higher interest rates may be necessary later this year as inflation accelerates.
IMF backs inflation targets for Armenia, Georgia
A new paper from the IMF makes a case for a gradual transition to full-fledged inflation targeting in both Armenia and Georgia in the medium term.
IMF: Turkish CB independence essential for IT
The independence of Turkey's central bank is essential for the success of inflation targeting, the IMF said in its 2007 article 4 report.