Interest rates
Bank Negara Malaysia cuts policy rate to fresh low
Labour market weakness and cautious households may hamper recovery, central bank warns
Have equities passed the Covid-19 test?
Reserve managers face a rebalancing and asset allocation challenge, with Fed interventions distorting yield curves and boosting equity valuations. What’s next for asset diversification?
Peter Praet on Europe’s Covid-19 responses
The former ECB chief economist talks about threats to financial stability, negative rates, common debt issuance and steps to improve the EMU
Riksbank expands QE and adds corporate debt to purchases
Swedish central bank cuts lending rates to banks, but keeps repo rate unchanged at 0%
Zimbabwe increases interest rates as inflation soars
Central bank raises interest rates to 35%
Coronavirus panic fuels a surge in cash demand
Covid-19 has led to banknote hoarding in Australia, Brazil, Canada, the eurozone, Russia and the US, fuelled by concerns about financial system stress, write Jonathan Ashworth and Charles Goodhart
Mexican central bank cuts rates despite rise in inflation
Board makes unanimous decision and stresses “uncertain” economic outlook
The Fed must be careful to avoid bank deposit crowding out
Rising US government debt will have a major effect on bank funding, write Wenhao Li, Yiming Ma and Yang Zhao
Bank of Canada stimulus to continue for ‘very long period’ – Macklem
Economic recovery will be “prolonged and bumpy”, governor Tiff Macklem warns
Brazil close to limit of monetary easing – minutes
Rate-setters stress new interest rate cuts could imperil financial stability
NY Fed economists weigh in on yield curve control debate
Jury still out on Japan’s measures to control yield curve but there is “one clear benefit”, researchers say
Paraguay cuts rates to 0.75%
Economic activity declined significantly in April, central bank reports
Covid-19 and oil: a tale of three countries
Oil-dependent nations are facing a crisis on two fronts. Central banks must now strike a balance between keeping inflation in check and restoring growth
Chilean government wants to give central bank QE powers
Draft law would allow Central Bank of Chile to buy government debt in “exceptional circumstances”
Namibia’s central bank cuts rates to record low
Central bank acts to preserve link to South African currency as it reintroduces lockdown measures
Costa Rica cuts rates to lowest level in over 10 years
Covid-19 has accelerated a disinflationary trend, central bank says
Should the BoE go negative?
Much research into negative rates suggests central banks should have little to fear, but there are plenty of caveats
Iran’s race towards monetary policy reform faces high hurdle reality
The Majlis Research Center’s Tohid Atashbar says positive outcomes from the Iranian central bank’s fast-tracking of monetary policy reform – made in response to Covid-19 and US sanctions – may prove difficult to deliver
New York Fed to tighten repo operations
Fed sees “substantial improvements” in dollar funding markets
Fed promises to keep buying assets at current rate
Fed will hold accommodation in place for “however long it takes”, chair Jerome Powell says; FOMC releases first projections this year
Appetite for renewed Fed dollar swap lines in doubt
With up to $300bn of positions nearing expiry, some say FX swap market can meet banks’ funding needs
Central banking enters a new era
Central banks face a delicate balancing act to preserve their reputations as they evolve into ‘buyers of last resort’ and some of their actions appear functionally equivalent to ‘monetary financing’
Canada scales back liquidity measures
Policy-makers keep rates unchanged; new governor Tiff Macklem plays observer role on first day
DNB paper says eurozone investment-saving curve flatter in recent years
Persistently low interest rates in eurozone appear to have weakened monetary policy – researchers