Inflation
RBA: price stickiness overstated in traditional models
Reserve Bank of Australia study shows New-Keynesian Phillips Curve overstates the degree of price stickiness in macro models.
BoJ makes small concessions to government
Minutes from Bank of Japan’s February policy meeting show divide between policymakers on strength of economy, analysts say central stance unchanged
The bitter divide on inflation targeting
Economists are split over a recent suggestion that central banks should raise their inflation targets to allow more room for cuts in crises
King sees “room for improvement” in Bank’s communication
Bank of England governor Mervyn King defends the central bank’s fan charts, which have drawn criticism, but says it can still refine the communication of its forecasts
India surprises with 25 basis point hike
Reserve Bank of India ups key and repo rates as inflation bursts through 8.5% ceiling
Fullani: reassures parliament on steady recovery
Bank of Albania governor Ardian Fullani reassures lawmakers of continued growth following IMF performance review
BOE paper: inflation co-movement linked to globalisation
New study into co-movement in inflation across industrialised countries links low-inflation rates to falling commodities prices
BoE’s Sentance: rate policy to offset fiscal tightening
Bank of England’s Andrew Sentance says monetary policy can compensate for the negative impact of fiscal tightening on demand
RBA reviews the way it measures CPI
A report by the RBA proposes changes to the way future CPI is reported and measured
BoE unanimously backed rate hold
The Bank keeps rates steady as the MPC remains cautious over the road to recovery
Iceland trims rates on króna strength
Central Bank of Iceland cuts to 9% despite fears over Icesave dispute
RBA justifies March rate hike
Signs of revival in economic activity convinced board members to hike rates by a quarter point
New BoK head sparks independence fears
Surprise choice of OECD representative Kim Choong-soo seen as way for government to exert control over central bank
China’s Zhou not flustered by higher-than-forecast inflation
People’s Bank of China governor Zhou Xiaochuan keeps a cool head as inflation increases by more than expected spooking analysts and markets, says central bank will keep to plans
Chinese inflation spike scares investors
Chinese consumer prices rise more than consensus forecast in February, sparking fears that the economy is overheating
Rate round-up
Swiss, New Zealand, Korean and Peruvian central banks all opt to hold rates
UK public’s price expectations moderately rise
GfK NOP survey on inflation attitudes from the Bank of England shows expectations remain stable
RBA’s Lowe latest to dismiss inflation target hikes
Reserve Bank of Australia assistant governor Philip Lowe says IMF paper’s suggestion of raising inflation targets not sensible, says higher targets would damage supply side
BoJ’s Nakamura declares ordinary policy tools redundant
In a high profile speech in Fukuoka last month, Bank of Japan’s Seiji Nakamura tells business leaders that ordinary channels of the transmission mechanism are not working
Volcker lambasts higher inflation targets
Former Fed chairman Paul Volcker calls the suggestion that inflation targets should be raised to about 4% “nonsense”; points to the difficulties of the 1980s
Bank of Japan Review – Measuring potential growth in Japan
Bank of Japan review notes difficulties with various methods used to forecast growth, says potential shortcoming should be at the fore of policymakers’ minds
Malaysia hikes as recession ends in emerging Asia
Bank Negara Malaysia raises its key rate by a quarter percentage point, citing stronger than forecast growth results in emerging Asia
Ghana’s Amissah-Arthur explains early 2009 hike
Bank of Ghana governor Kwesi Bekoe Amissah-Arthur says the West African country’s government has made vital progress in cutting spending, allowing key rates to be lowered
Real-time activity index shows depth of recession
Philadelphia Fed paper constructs index of real-time macroeconomic information, showing that the recent recession was defined by its severity relative to its length