Interest rates
Risk of hitting ZLB in the future reduces inflation today – Fed paper
Policy-makers could use “risk-adjusted policy rule” to offset risk of undershooting, researchers say
The challenges facing Christine Lagarde
The new ECB president will need to focus on a successful review of the ECB’s monetary and communications policy, while encouraging fiscal stimulus and structural reform
Bank of Mexico implements third rate cut of easing cycle
Divided board decides to lower key rate by 25bp to 7.5%; two board members voted for a 50bp cut
Egypt slashes rates by further 100bp
Sharp drop in inflation prompts easing by monetary policy committee
Bank of Jamaica should ‘modernise’ regulatory framework – IMF
Fund’s recommendations follow completion of country’s second consecutive support programme
Excess of cash in Solomon Islands banks driven by high rates – IMF
Basket exchange peg is ‘appropriate’, says IMF, but lending rates remain too high
Research proposes ‘Monk’ model of long-term monetary transmission
Equilibrium in standard models only affected by short rates, say Garriga, Kydland and Šustek
Fed ramping up climate change research efforts – Lael Brainard
Climate change could impact neutral rate, governor says; Fed can’t afford to ignore the issue, San Fran Fed’s Mary Daly adds
IMF paper looks at Moroccan monetary policy
Findings show balance sheet has significant impact, especially via smaller firms – researchers
IMF praises Bank of Mexico for not intervening in forex market
Peso strengthens against regional peers following lack of intervention from central bank
Bank of Thailand cuts interest rate to record low
Bank of Thailand cuts rate to all-time low and relaxes forex rules
New York Fed proposes three SOFR averages
Move is “important next step” in encouraging transition from Libor, official says
Turkish central bank supplies lire through stock exchange
Governor acknowledges unconventional short-term liquidity provision, as traditional repo operations come to a halt
Swiss governor rules out SNB transfers to pension funds
Negative rates are hurting sector but pension reform is solution, Jordan says
Brazil cuts rates to new record low as inflation drops
Rater-setters reduce key Selic rate by 50 basis points to 5%
Fed reduces rates but signals pause
Current stance of policy “likely to remain appropriate” to sustain moderate expansion, Powell says
Bank of Canada on hold but watching economy’s ‘resilience’
Governing council says economy is likely to be “tested” by trade conflict and uncertainty
Fed’s policy framework may incentivise reserves hoarding
However, this doesn’t seem to affect bank lending, Fed researchers find
Bank of Israel’s communication more accessible than Fed’s and ECB’s – research
In August, the central bank issued a special statement correcting forward guidance on lower inflation
Chile cuts rates again following weeks of protests
Below-target inflation requires more monetary stimulus, says the central bank
‘Never give up’: Draghi holds final monetary policy meeting
Outgoing ECB president says council issued a call for unity
Fed expands daily repo operations
Recent auctions show banks still have a strong demand for liquidity following last month’s rate spike
Indonesia cuts rates for fourth time this year
Indonesia has cut a total of 100bp in the latest cycle; more cuts are possible but depend on Fed move and rupiah stability
Tackling ‘dead-end’ monetary policy
A shift to lower inflation targets would help central banks escape forever-loose monetary policy, writes former IMF chief Jacques de Larosière