Monetary policy
A fractured monetary system
US policy is encouraging a transition away from a dollar-led, rules-based order
Trust allows ‘decisive’ policy action – Carstens
BIS general manager says more work is needed to secure trust in financial stability and fiscal policy
Bank of Israel holds benchmark rate
Central bank hopes to help stabilise markets as conflict in Gaza and global policy uncertainty continue
Turkish central bank raises reserve requirements
Move comes as governor says bank will maintain tight monetary stance
Egypt eases policy by 100bp
Central bank cuts benchmark rate to 24% and expects to meet inflation target in Q4 2026
Book notes: The political economy of central banking, by Alessandro Roselli
Roselli’s book offers a comprehensive history of the relationship between governments and central banks
Sri Lanka cuts benchmark rate to 7.75% as deflation persists
Central bank projects inflation will move into positive territory during third quarter
Maurice Obstfeld on the trade war’s damage to the monetary system
The former IMF chief economist speaks about Trump’s chaotic economic policies, the erosion of Fed independence and dollar stability, difficult policy trade-offs for central banks, and the threat to the Bretton Woods institutions
Nigeria keeps policy rate at 27.5%
Bank makes second consecutive hold as inflation declines, and cites alarm over trade policy uncertainty
Romania opts to hold, citing domestic and global uncertainty
Central bank cites fluctuating commodity prices, tariff risks and volatility resulting from national politics
Ukraine’s Andriy Pyshnyy on the US minerals deal, ongoing reforms and post-war plans
The National Bank of Ukraine’s governor speaks about managing inflation, financial sector reform, FX reserves, international aid and actions in the event of a peace deal
German and Spanish governors criticise US policies
Nagel defends Fed independence, while Escrivá cautions against excessive deregulation
Korean officials argue for stablecoin authorisation body
Central bankers warn of currency substitution and monetary policy risks
Ex-BoE official calls for active monetary response to gilt shocks
Clear framework needed to address government bond market volatility, Sushil Wadhwani argues
Eurozone monetary policy must remain ‘firmly’ neutral – Schnabel
ECB board member cautions against overreacting to undershooting
Rate hikes have created debt-servicing difficulties – ECB study
Research also points to overall robustness in eurozone’s household lending sector
BoE governor gives optimistic forecast about scenario approach
Bailey says new method allows for better projections, given growing frequency of ‘black swans’
Albania, Norway, Sweden hold rates, Poland cuts by 50bp
Falling food and energy prices amid high trade uncertainty prompt cautious approaches
Bank of England cuts rates to 4.25% as disinflation continues
Effects of US tariffs on growth will be smaller in UK than elsewhere, central bank says
Fed holds rates as experts sound alarm over stagflation
FOMC says risks have risen on both the employment and inflation sides of its mandate
Czech National Bank reduces rates by 25 basis points
CNB makes “very cautious” move amid domestic economic recovery and international uncertainty
Georgia and Armenia hold rates
Central banks in both Caucasus nations point to risks of inflation resulting from US tariffs
Pakistan cuts rates to 11%
Central bank expects inflation to rise to 5–7% target level over coming months
Time to worry about Japanese debt?
The transition to positive rates means Japan may need to re-examine its huge public debt burden, argues Sayuri Shirai