Interest rates
Riksbank studies link between equity prices and interest rates
Measures that do not directly account for interest rates can better explain historical prices
Monetary Policy Benchmarks 2021 – presentation
Central Banking’s monetary policy subject specialist Daniel Hinge speaks with Christopher Jeffery about the governance of the policy function, forecast processes, transparency and more
Zimbabwe’s central bank hikes rates to 60%
Resurgent inflation pressures force inflation to 54% while exchange rate weakens
Colombia continues tightening monetary policy
Central bank board unanimous on raising rates, but splits 5–2 on size of increase
BoJ cuts inflation outlook to zero as it holds rates
Producer price inflation in Japan is at a 13-year high, but CPI inflation lingers around zero
Lagarde acknowledges high inflation pressures
ECB keeps stimulus unchanged and insists inflation will decline during 2022
Brazil makes largest rate hike in decades on fiscal concerns
Inflation continues to grow, as mid-month reading hits 10.3% in October
Paraguay’s MPC hikes rates by 125 basis points
Country follows Chile with unexpectedly large tightening as inflation continues to rise
Hiking rates before asset sales may constrict credit – paper
Kansas City Fed research says raising the fed funds rate first may cause yield curve inversion
Chilean MPC speeds up tightening, citing higher inflation risks
Central bank board surprises markets, increasing interest rates by 125 basis points to 2.75%
Covid-19, crypto and climate weigh on global economy – GFSR
Central banks face difficult “intertemporal trade-offs”; poorer nations unlikely to regain pre-Covid growth levels for “many, many years”, says IMF’s financial counsellor Tobias Adrian
ECB’s Lane: one-off wage increases do not equal sustained inflation
Inflation is forecast to have reached 3.4% year on year in September, well above the ECB’s 2% goal
Unemployment falls across North America
US recovery is weaker than expected, while Canada reaches pre-pandemic jobs levels
Peru central bank raises rates for third time in two months
BCRP forecasts inflation will return to target, but expresses concern over expectations
Peru’s president re-nominates long-standing governor
Economy minister says Julio Velarde is an “excellent professional”
Bank of Israel again holds rate steady
But MPC signals it is ready to end QE programme if economic recovery continues
Uruguayan central bank makes second rate increase in a row
Central bank aims to end “expansive” monetary policy and guide inflation to target range
Evergrande tests China’s commitment to deleveraging
Chinese officials are having to choose between near-term growth and long-term economic health
Romania orders first rate increase in more than three years
Central bank adds 25 basis points as energy prices bite, while Moldova continues tightening
Iceland tightens policy to tame inflation
Inflation rose to 4.4% in September, above the central bank’s 2.5% target
RBNZ begins monetary tightening with 25bp hike
Central bank is confident inflation will return to target, but says growth will be “volatile”
Larry Summers on stagflation risks, lessons from Delphi and never-ending ‘punch’
The former US Treasury secretary speaks about fiscal ‘overexpansion’, Fed/Treasury debt discord, the pitfalls of ‘unknown unknowns’ and central bankers ‘unable’ to remove the ‘punchbowl’
US PCE inflation rises to 4.3%
Fed’s preferred rate reaches new high in August, but “trimmed” measure steady at 2%
Colombia raises policy rate for first time since 2016
Board forecasts inflation will be above target band for the rest of this year