Interest rates
RBI’s Subbarao bemoans contradictory demands on central bank
Reserve Bank of India governor says unique Indian growth and inflation dynamics make it impossible to satisfy everyone; deflects criticism over rates being both too high and too low
National Bank of Poland says rate cuts will bring inflation up to target
Polish inflation projected to fall to 1.3% in 2013 before rising to 2.6% in 2014, after benchmark rate slashed by 150 basis points in five months
Central Bank of Mexico cuts rates for first time in four years
Mexico slashes benchmark rate 50 basis points to combat falling demand and rising unemployment; Brazil and Canada hold rates steady
Draghi hints at governing council rate split
ECB holds rates again but Draghi reveals dissent among council members; central bank staff lower growth forecast
ECB and BoE edge closer to more easing
Commentators home in on signs the ECB is shifting towards a more dovish stance; BoE could sanction more QE after three members voted in favour last time
Polish central bank shocks market with steep rate cut
Monetary policy committee cuts rates by 50bp but indicates the move brings to an end the cycle of easing started in November last year
Philadelphia Fed president demands end to QE
Charles Plosser says asset purchases should be phased out gradually and halted before the end of the year; ‘meagre benefits’ are outweighed by threat to price stability
Bank of Mongolia launches ‘interest rate corridor’
New monetary policy framework seeks to reduce volatility in short-term interest rates, improve transmission and make policy more transparent
Bernanke evaluates long-term interest rates
Federal Reserve chair Ben Bernanke expects long-term interest rates to rise gradually; says upside and downside risks to rate level are 'roughly symmetric'
Norges Bank ‘takes note’ of report criticising its communication
Norges Bank governor Øystein Olsen unintentionally misled markets over Norges Bank rate cut last year, according to a report funded by Ministry of Finance
Thailand deputy defends rate hold in wake of appreciating currency
Pongpen Ruengvirayudh says surge in capital inflows is a cause for concern, but says abandoning inflation targeting would be ‘counterproductive’
BoE’s Tucker urges careful consideration of negative interest rates
Paul Tucker encourages MPC discussion of alternative accommodative measures; expects existing QE to gain more traction as eurozone recovers
Bundesbank’s Dombret warns low interest rates are not 'suitable therapy'
Executive board member Andreas Dombret says exit from low interest rate environment must take place at ‘right time’; expounds damage it causes to savers
Bank of Finland paper urges QE use outside crises
Analysis based on DSGE model finds asset purchases are a useful monetary policy tool in all states of the economy, but should be co-ordinated with conventional interest rate policy
Norwegian paper suggests alternative to ‘conclusion-based’ interest rate decisions
Research examines the stories behind interest rate decisions; reveals benefits to voting on contributing elements as opposed to final level
Czech researchers examine factors behind monetary transmission lags
Working paper synthesises 67 quantitative studies of lags in monetary policy transmission, finding that financial development increases lags, but results may be biased by study design
Poland cuts rates again as CEE states fight stagflation
National Bank of Poland cut its benchmark interest rate by 25 basis points for the fourth successive meeting; most central banks hold in face of steady inflation
Bank of Israel likely to hold rates throughout 2013
Staff at Israeli central bank forecast steady growth and inflation over next year; say benchmark interest rate would remain unchanged
RBA holds rates but suggests cuts could follow
Reserve Bank of Australia holds interest rate at 3%; governor says stable inflation would allow board to make cuts and boost demand if needed
Fed holds rates and maintains asset purchases in first vote since membership shake-up
Esther George, president of the Federal Reserve Bank of Kansas City, votes against QE in her first meeting
Hungary defies IMF to cut rates again
Central bank cuts rates in six consecutive meetings, despite IMF warning that inflation is not well contained and looser policy will do little to boost the economy
ECB’s Praet warns against ‘hazardous’ policy experiments
Executive board member says he is ‘very sceptical’ of suggestions to raise the inflation target, but cautions against complacency over policy toolkits
New studies tackle diverse inflation outcomes in eastern Europe
Papers by the IMF and National Bank of Slovakia assess factors behind incomplete interest rate pass through and divergent drivers of inflation in eastern Europe
Polish monetary policy council divided on size of rate cut
National Bank of Poland lowers interest rate for third successive meeting; some council members push for even deeper cuts