Monetary policy
Philippine central bank cuts rates to record low
BSP cuts rates by 50bp as IMF projects 3.6% GDP contraction in 2020
Weidmann to use ECB documents before German lawmakers - report
Bundesbank president’s appearance may satisfy conditions of German court ruling
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
UK debt office narrowly avoided disorderly market in March
DMO chief says BoE intervention triggered rapid recovery; debt issuance now running at record levels
NGFS offers concrete next steps to assess climate vulnerabilities
New climate risk scenarios will be incorporated into Bank of England stress tests and Bundesbank economic modelling, write Sarah Breeden and Sabine Mauderer
Bank of Canada stimulus to continue for ‘very long period’ – Macklem
Economic recovery will be “prolonged and bumpy”, governor Tiff Macklem warns
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
Weidmann to testify quarterly in parliament to explain ECB policy
Measure follows constitutional court ruling requiring ECB to demonstrate proportionality of government bond purchases
Brazilian central bank cuts rates to record low
MPC says “remaining space for monetary policy stimulus is uncertain”
PBoC will not engage in monetary financing, Guo says
Senior central bank official says China will not monetise deficits or use negative interest rates
BoE expands asset purchases by £100 billion
Haldane casts sole vote against expansion as ex-MPC member Sentance warns of “autopilot”
Namibia’s central bank cuts rates to record low
Central bank acts to preserve link to South African currency as it reintroduces lockdown measures
Bank Indonesia cuts rate for the third time this year
Governor hints that further cuts may come while analysts warn economy may shrink further
Costa Rica cuts rates to lowest level in over 10 years
Covid-19 has accelerated a disinflationary trend, central bank says
US economy entering ‘bounce back’ phase – Powell
Fed chair forced to defend move to follow through with corporate bond purchases in Senate hearing
Should the BoE go negative?
Much research into negative rates suggests central banks should have little to fear, but there are plenty of caveats
Reserve managers ‘unprepared’ for home trading
Covid-19 presented reserve managers with unprecedented business continuity challenges at a time of acute market and economic distress
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
US citizens think Fed’s communication strategy needs adapting – Fed report
“Fed Listens” events revealed a lack of understanding about inflation targeting, report shows
Ukraine’s central bank cuts rates to record low
Central bank says move was made possible by IMF aid and pledges further boost to reserves
High US inflation should not be ruled out
A prolonged health crisis raises the risk that supply-side factors, monetary expansion and rising personal savings could stoke hidden inflationary pressures
Fed policy is too tight given FOMC projections – former Fed economist
“An outlook that bad for that long is a clear sign that policy is too tight,” Joseph Gagnon says