Monetary policy
Zambia holds rates despite double-digit inflation
Governor says inflation will decelerate faster than expected despite being three times target rate
Majority of central banks have power to issue debt for monetary purposes
Central banks pointed to draining liquidity as a reason for issuing debt
Eurozone inflation reaches 10-year high at 3%
Rapid rise in energy prices was main driver, according to Eurostat estimates
FX market intervention key tool for emerging market economies
Central bank markets departments perform a wide range of different roles
Bank of England names new chief economist
Huw Pill is former ECB official and chief European economist for Goldman Sachs
Chilean central bank steps up policy tightening
Board unanimously decides to increase interest rates by 75 basis points to 1.5%
Canada records surprise GDP decline
Second-quarter figures show 0.3% contraction, which may affect taper and monetary policy
Asset purchase programmes prevalent among advanced economies
But just 17% of emerging market economies said they operate a purchase programme
Some philosophical questions about the future of central banking
Kenneth Rogoff weighs up the many challenges facing central banks in the years ahead, from debt and inflation to negative rates and the dangers of ‘mission creep’
Majority of central banks use corridors to set market rates
A handful use floors due to unconventional policy, and some use other methods
Too great expectations from the ECB’s strategy review
The review process represents operational best practice, but will fail to unify the Governing Council
Salaries higher for monetary policy staff than markets specialists
Budgets for monetary operations/markets teams were larger, but monetary policy staff were slightly better compensated
South Korea raises policy rate
Governor cites rising household debts and house prices as reasons to tighten policy
ECB council divided on forward guidance, minutes show
Some senior officials argued new formulation risks inflation overshooting
Is the ECB’s strategy review enough?
The reformed framework may allow greater stimulus to tackle weak inflation expectations, but the Governing Council is already divided on what to do next
Central Bank of Iceland raises rates again
Above-target inflation and higher GDP growth justify second rate hike since May, MPC says
Paraguay raises rates as start of ‘gradual normalisation’
Country is latest in Latin America to tighten policy, alongside Brazil, Uruguay and Peru
German inflation could be over 2% until mid-2022 – Bundesbank
Inflation is likely to drop from early 2022 as base effects end, central bank forecasts
Brazilian minister says Mercosur could have single currency
President has also suggested monetary union with members of trade area
From Covid‑19 recovery to a greener economy
BNP Paribas asks, in a world challenged by the Covid‑19 pandemic and empowered by recovery from it, what’s next for the central banking sector? Also discussing how banks and central banks can collaborate to encourage sustainable growth and build a better…
Bank of Israel delays rate hike as Covid-19 cases rise
MPC says it will continue with accommodative policy despite GDP growth and on-target inflation
Fed may taper asset purchases this year, say FOMC minutes
Federal Reserve staff warn US financial system has “notable” vulnerabilities
Norges Bank signals September rate hike
Norweigan central bank stresses long period of low rates increases financial stability risks
New forward guidance is “elemental” for ECB strategy, Lane says
Chief economist implicitly disagrees with Belgian governor’s criticism of new wording