Interest rates
Fischer says Fed ‘better think about’ international spillovers
Fed vice-chair says international effects of monetary policy ‘spill back’ on to the US, and the central bank cannot make ‘sensible’ choices without taking them into account
BIS paper proposes defence against market panics
Proposal would see governments link level of borrowing to interest rates, breaking the vicious cycle of rising rates leading to increased default risk
Thailand’s central bank governor warns on risks of US rates normalisation
Prasarn Trairatvorakul warns that US interest rate normalisation could lead to ‘capital flow volatility’, considering it a ‘notable risk’
New York Fed’s Potter fleshes out normalisation plans
Vice-president responsible for open market operations gives details on how the Fed will use interest on excess reserves and reverse repos to raise its interest rate
Central bank independence key focus of Brazilian elections
With the central bank’s autonomy a hot topic in the build-up to this weekend’s presidential elections, specialists are divided on the benefits of greater independence
Argentina’s central bank governor quits after Presidential criticism
Juan Carlos Fábrega resigns after Argentina’s president accuses the central bank of giving ‘confidential information’ to banks
Boston Fed paper examines stock price sensitivity to monetary policy
Research presents evidence from the Enron scandal that stock prices of financially constrained companies become less responsive to monetary policy shocks if financial frictions are present
Central Bank of Morocco cuts rates for first time since March 2012
North African economy has seen growth slow and unemployment increase in 2014 as its main export markets in Europe continue to struggle
Canada deputy: Neutral rate of interest has dropped
Potential growth will be lower than before the crisis, warns Carolyn Wilkins, while neutral rate for Canada is 3-4%, down from pre-crisis level of 4.5-5.5%
Chile and Peru cut key rates by 25bp citing 'low dynamism'
Both central banks point to a lack of “dynamism” in their economies as they cut their key interest rates; Peruvian statement stresses the decision does not imply a sequence of rate cuts
ECB and BoE seek insights into yield curve behaviour
Frankfurt conference aims to improve understanding of the yield curve in the wake of the financial crisis, at a time when European and US yields are diverging
Cœuré explains motivation for negative deposit rates
European Central Bank executive board member says it is ‘not enough’ to lower the main refinancing rate in an environment of excess liquidity
ECB cuts rates and launches asset purchases
Central bank cuts refinance rate to 0.05% and deposit rate to -0.2%; Draghi unveils plans to buy asset-backed securities and covered bonds
Riksbank's Ingves and Flodén warn over risks of persistent low interest rates
Interest rates may need to stay low - creating dangerous levels of household debt, Riksbank governor and deputy tell parliamentary committee
Chile cuts interest rates to lowest level since February 2011
Central bank may resort to additional cuts in the months ahead as growth disappoints; Number of Latam economies have performed below expectations so far this year
Bank of Korea cuts interest rate to lowest level since 2010
Decision prompted by ‘much worse' business sentiment than expected, governor says; analysts expect limited boost to GDP as economic slowdown is ‘structural in nature'
Mexico’s Carstens hails Fed’s communication on tapering
Augustin Carstens says Fed has ‘gone out of its way’ to spell out timing and dangers of adjustment; calls on Europe and Japan to ‘depend less on monetary policy’
Rajan: ‘Let’s fight the anti-inflation fight once’
Raghuram Rajan says risks to inflation target have become ‘more balanced’ in recent months, but stresses the need to remain ‘vigilant’ as RBI holds key rate at 8%
IMF charts path towards PBoC policy rate
Staff report encourages the People’s Bank of China to stabilise borrowing costs in the interbank market as an ‘interim step’ towards establishing a policy rate
Central Bank of Colombia raises rates for fourth consecutive month
Bank raises benchmark interest rate by 25 basis points to 4.25% as annual growth is expected to reach 5% this year on the back of jump in household spending
Central Bank of Nigeria inks deal to set up credit fund for small businesses
Governor Godwin Emefiele signs MoU with state governments on $1.4 billion fund to lower lending rates for SMEs, but critics call for speedier remedies
Bank of England 'edges closer' to rate rise
Mark Carney notes ‘quickest job creation on record' since he took office last July amid confusing labour data; market practitioners say likelihood of a rate hike this year is rising
Cœuré spells out difficulties of global monetary policy co-ordination
European Central Bank’s Benoît Cœuré says he is 'not convinced' the existing approach to co-ordination should be overhauled; rejects feasibility of a 'global planner'
The reorientation of central bank policy objectives
In this sponsored feature, Peter Warburton and Joanna Davies discuss how the policy challenges for central banks have been transformed in the aftermath of the global financial crisis