Monetary policy
Nandalal Weerasinghe on Sri Lanka’s IMF programme, central bank reforms and road to recovery
The Central Bank of Sri Lanka governor speaks about his return from retirement to aid Sri Lanka’s structural reforms and recapitalisation, reinforce central bank independence and develop financial resilience
‘Financial conditions targeting’ could help stabilise output – paper
“Risk-centric” New Keynesian model highlights benefit of acting on financial conditions
Banknotes: October to December 2024
A round-up of news and salient issues that have affected central bankers in the past three months
Australian parliament passes bill to reform RBA
Bank’s board to be split into two groups covering monetary policy and governance
Cross-currency letters of credit gaining popularity in Asia
Divergent central bank policies see CNH LCs increasingly used to cover USD invoices
People: October to December 2024
A round-up of central bankers in the news and on the move
BoK makes surprise 25bp cut to base rate
Majority of monetary policy board decides risks to growth warrant loosening in policy
One in five main models has endogenous financial sector
Benchmark highlights array of methods central banks use to model financial sector, but 40% still do not model the financial side of the economy
NBER paper offers ‘unified theory’ of liquidity traps
Researchers ask whether major economies are doomed to return to zero lower bound
RBNZ delivers third consecutive rate cut
Central bank signals further easing early next year as inflation returns to target band
Nigeria tightens policy further as inflation continues to rise
Central bank raises rates by 25bp as annual headline inflation exceeds 33%
Economists urge BoE to be more transparent on rate paths
Value of scenario analysis depends heavily on revealing reaction function, speakers say
Uncertainty is the only sure thing – BoE’s Lombardelli
Deputy governor says bank will use scenario planning to communicate uncertainty during volatility
Turkey holds rates at 50% for eighth consecutive month
Analyst says central bank’s cautious positivity about disinflation points to December cut
UK inflation could stay closer to 2% than forecast – BoE deputy
Dave Ramsden presents evidence that disinflation could continue its recent trend
Fifth review: done. How Ukraine set a record in passed IMF reviews
NBU governor Andriy Pyshnyy says unlocking funding has become a matter of survival for his country
Rate hikes affect manufacturing economies more – Fed study
Authors find similar effects across eurozone and in US at county level
Canada’s GDP revisions ‘raise questions over monetary policy’
However, experts disagree on whether central bank’s modelling was flawed and if it cut rates too quickly
Two-thirds of central banks forecast policy rate in main models
But relatively few make their rate forecasts public
Iceland cuts rates by 50bp
Inflation continues to decelerate but GDP growth is revised down
Hungary holds rates again
MNB remains hopeful about 2025 as economy slides into recession
Bank Indonesia holds rates as rupiah weakens
Bank says inflationary policies under Trump would boost dollar and lead to fewer Fed rate cuts
Central banks to maintain independence despite threats – panel
Top central bankers discuss Trump, AI and why they plan to ignore IMF on rate cuts
More volatility calls for greater agility – Schnabel
ECB official says new tools, including negative rates, may be needed in more disruptive age