Interest rates
Carney's BoE walks fine line between stimulus and financial stability
Bank of England governor Mark Carney’s maiden speech includes announcement of relaxation of bank liquidity rules; insists the central bank is in charge of interest rates, despite market moves
Forward guidance successful in mitigating downside risks to price stability
Provision of time-based forward guidance reduces downside price stability risks but may result in upside risks during the medium term, finds ECB working paper
Economists weigh Fed exit at Jackson Hole
Robert Hall warns against tightening policy too soon; Arvind Krishnamurthy lays out exit path that would see Fed selling its Treasury portfolio while maintaining its purchases of MBS
LCRs in low-liquidity settings lead to big externalities
RBA research paper suggests introducing a liquidity coverage ratio in certain settings leads to large liquidity premiums and pushes the risk-free rate to the floor of the interest rate corridor
New Zealand opposition says RBNZ internal review backs case for more transparency
Internal review confirms New Zealand is an outlier in giving the Reserve Bank governor a monetary policy veto; Green Party says change in law should be 'non-controversial'
Belarusian chair Ermakova reveals how she tackled runaway inflation
National Bank of the Republic of Belarus chair Nadezhda Ermakova tells CentralBanking.com about the central bank’s efforts to deal with the 2011 currency and ensuing inflation crisis
Georgian and Armenian central banks face different sides of inflation coin
National Bank of Georgia continues easing cycle as deflation returns; Central Bank of Armenia raises rates to combat sharp increase in inflation
Fed researchers find effects of QE ‘minimal' without guidance on rates
Paper by senior economists from the New York and San Francisco Feds argues that signalling a rate rise will be far more meaningful than communication on when asset purchases might come to an end
BoE’s Weale votes against forward guidance
Martin Weale votes against guidance out of concern for medium-term inflation expectations, while MPC members remain divided over the prospect of more QE
Mozambique cuts rates again as inflation undershoots target range
Inflation in Mozambique has fallen below the central bank's target range despite IMF predictions to the contrary; measures in place to improve monetary policy transmission
RBA cuts growth forecast and suggests further easing could follow
Reserve Bank of Australia lowers its forecast for December’s growth rate; could follow up this week’s rate cut with another as labour market conditions weaken
BoJ and BoK vote to keep interest rates unchanged
Bank of Japan keeps rates at zero and will continue asset purchases for 'as long as necessary' to hit 2% inflation target; regional impact of possible US tapering remains uncertain
Romanian interest rates could fall yet further, says central bank
National Bank of Romania uses quarterly inflation report to signal it is likely to continue monetary easing, as inflationary pressures dissipate and growth remains weak
Bank of England ties monetary policy to unemployment
MPC will not raise interest rates or unwind its asset purchases ‘at least until’ the unemployment rate falls below 7%; unlikely to happen within the next three years according to latest forecast
IMF backs Czech forex intervention
Article IV says a ‘persistent and large undershooting’ of the Czech National Bank’s inflation target would warrant a weaker koruna; governor Miroslav Singer says board is coming round to the idea
ECB confirms forward guidance, holds rates without discussion
Mario Draghi confirms ECB expects to keep interest rates at current rates or lower, but tells press conference there was no discussion on changing rates today
BoE and Fed keep policy on hold
Federal Reserve points to risks of below target inflation and cools its assessment of economic activity; Bank of England expected to introduce forward guidance next week
Turkey’s central bank ramps up inflation forecast
Central bank raises inflation forecast for 2013 on account of depreciating lira and higher oil prices; MPC plots strategy for dealing with uncertainty surrounding the unwinding of QE
IMF looks to ECB for more monetary easing
IMF encourages the ECB to cut interest rates and launch a new round of long-term low-interest loans to buy more time for eurozone banks and legislators
Hungarian central bank signals rate cut slowdown
Monetary council cuts benchmark rate by 25 basis points for 12th consecutive meeting; says global volatility may justify a change in pace in coming months
Turkish rate rise brings easing to an end
Central bank increases overnight lending rate by 75 basis points; MPC signals willingness to tighten further as inflation jumps above 8%
Bank of Canada ‘sharpens’ forward guidance
Governing council commits to holding interest rate at 1% for as long as there is ‘significant slack’ in the economy, inflation is ‘muted’ and household debt remains under control
BoE's Fisher outlines likely QE exit route
BoE's head of markets tells parliamentary committee the MPC would hike interest rates as a signal that asset sales were on the way, but said its next move is more likely to be further easing
Turkish central bank weighs rate hike to stem lira slump
Governor Erdem Başçı says the MPC will consider widening the interest rate corridor in its meeting next week; forex auctions failed to reverse falling value of assets and currency