Inflation
Norway’s Gjedrem outlines new strategy for sovereign wealth fund
Norges Bank governor Svein Gjedrem says oil fund’s new investment strategy will include third asset class
India tightens loan-to-value ratios
Reserve Bank of India sets out higher loan-to-value ratios on housing loan exposures; central bank also hikes as inflation, inflation expectations, remain high
Abandon theory, Sheng urges central bankers
Andrew Sheng says current generation of central bankers became so enamoured with models they missed bigger picture; says there will be a great need for discretion, not rules, in future
Deflation caused by low growth expectations: BoJ paper
Bank of Japan study says deflation made worse by falling growth, inflation expectations
Bank’s Bean points to problems in measuring spare capacity
Bank of England deputy governor Charles Bean says difficulty in measuring spare capacity creates imprecise data
BoE’s Fisher: further QE a possibility
Bank of England rate-setter Paul Fisher says central bank could provide stimulus should conditions warrant it
Bernanke hints at further round of QE
Federal Reserve chairman Ben Bernanke says Fed is prepared for further stimulus
Riskier investment strategy rewards GIC
Government of Singapore Investment Corporation Annual Report reports rise in portfolio returns after investment in riskier assets
Google price index gets analysts’ thumbs-up
Commentators praise the innovation underlying Google price index; despite limitations, index could work as a CPI subset
Sentance: Bank risks losing credibility if rates remain on hold
Bank of England external MPC member Andrew Sentance says central bank risks being seen as not taking its inflation-fighting remit seriously if it does not begin to raise rates
Singapore tightens to spur faster appreciation
Monetary Authority of Singapore tightens policy further to allow for faster appreciation of Singapore dollar
Bank Negara Malaysia - Monetary and Financial Developments
Malaysian central bank’s August Monetary and Financial Developments report shows inflation of 2.1%
BoC: Business Outlook Survey
Bank of Canada Business Outlook Survey shows domestic firms’ growth outlook remains muted
PBoC proposes technological solution to address labour-driven inflation
People’s Bank of China monetary policy report says higher productivity will address rising labour costs
RBI’s Gokarn identifies emerging inflation risks
Reserve Bank of India deputy governor Subir Gokarn says changing dietary habits are driving up food prices
Bank of Canada: central banks prefer higher haircuts
Bank of Canada study shows haircuts on collateralised assets is greater when central banks cannot lend exclusively to illiquid institutions
Vietnam proposes lifting gold ban to stem inflation
State Bank of Vietnam head of foreign exchange Nguyen Quang Huy says restrictions on gold imports may be lifted if domestic prices are unsustainable; move could help contain inflation
NY Fed’s Sack on FOMC’s policy shift
New York Federal Reserve executive vice president Brian Sack said further measures represent meaningful shift in balance sheet path
CEPR advocates rule-based approach to central bank projections
Centre for Economic Policy Research study says central bank projections based on interest rate rule yield same results as one on market expectations
New York Fed research finds flaws in inflation expectations polls
New York Federal Reserve research uncovers faults in measuring inflation expectations; says questions on rate of inflation rather than price level provide better guide to future uncertainty
Argentina’s Marcó del Pont nominated for full term
Argentine President nominates central bank governor Mercedes Marcó del Pont for full six-year term, even as inflation soars and currency value drops; deputy, board members also nominated
BoE: higher probability of further stimulus
Bank of England Monetary Policy Committee minutes show members felt more stimulus measures may be required to steer economy towards recovery
Bank’s Bailey places public at heart of stability remit
Bank of England’s Andrew Bailey says public acceptance of stability goal necessary to stave off future crises
RBI narrows rate corridor with repo, reverse repo hikes
Reserve Bank of India lifts repo and reverse repo rates in first-ever mid-period policy review; narrows rate corridor as flagged to cut market volatility