Monetary policy
New central bank policy mandates could cause vicious feedback loops
Discord at the core
RBA cuts growth forecast and suggests further easing could follow
Reserve Bank of Australia lowers its forecast for December’s growth rate; could follow up this week’s rate cut with another as labour market conditions weaken
Financial fragmentation persistent in face of loose monetary policy stance
ECB article provides evidence of heterogeneous interest rate pass-through in the four largest eurozone economies, based on new models
Romanian interest rates could fall yet further, says central bank
National Bank of Romania uses quarterly inflation report to signal it is likely to continue monetary easing, as inflationary pressures dissipate and growth remains weak
Peter Praet delves deeper into ECB forward guidance
The ECB executive board member explains why the central bank issued forward guidance and how it will work; emphasises the importance of money dynamics in determining future policy
RBA governor hints at additional easing
Glenn Stevens says Australia's inflation outlook may afford some scope to ease policy further if needed to support demand
PBoC removes lending rate floor
From tomorrow, Chinese banks will be able to price loans as low as they like - but in the short term the effect is unlikely to be felt as loans are generally priced above benchmark rate
EM central banks should take cue from ‘the best in the world', says RBI governor
Duvvuri Subbarao also highlights the historical differences in mandates between EM and advanced economy central banks
Bundesbank paper contrasts techniques for identifying monetary policy shocks
Discussion paper compares different methods for identifying monetary policy shocks; looks at use of VAR models and narrative time series
Bernanke: Past century shows ‘central banking doctrine and practice are never static'
Fed chief added recent crisis has underscored the need to strengthen and better integrate US monetary policy and financial stability frameworks
Fed's Williams argues for 'muted' monetary policy in uncertain economic times
Reserve Bank of San Francisco governor John Williams has examined the 'implications of uncertainty about the effects of monetary policy for optimal monetary policy'
Carney's BoE shifts towards forward guidance on rates
Bank of England holds monetary policy steady, telling markets that expectations of rate rises have been premature; formal forward guidance is expected at the August meeting
IMF plans overhaul of assistance to central banks and governments
Policy paper lays out plans for ‘single strategy’ combining technical assistance and training; pilot programme for new Capability Assessment Program aims to improve monetary and fiscal policy
Central banks need to start tightening policy, says BIS
The Bank for International Settlements says easy monetary policy has reached the end of what it can usefully do, warning that continuing QE will exacerbate risks and delay necessary reforms
RBNZ faces calls to dilute governor's power
Bill introduced by New Zealand's Green Party would see monetary policy set by the whole board and force central bank to publish minutes
BoE research warns of self-fulfilling prophecy in 'speed-limit’ monetary policy
Working paper says targeting rates of change may not be as beneficial as some studies have suggested; could cause interest rates to become ‘pinned’ at the zero lower bound
BoJ minutes show concern over bond market pressure ahead of QE taper
Members at the May meeting of the Bank of Japan’s policy board agreed on the need for a ‘flexible’ approach to bond purchases as fears over the end of QE in the US push up long-term rates
Shirai says Bank of Japan’s communication has ‘room for improvement’
Board member explains reasons for dissent in recent monetary policy meeting; says Outlook Report is unclear in some places and misleading in others
Fed research models optimal monetary and fiscal policy under uncertainty
Discussion paper seeks to improve on previous models by introducing uncertainty; finds it is optimal for the government to spend more at the zero lower bound under uncertainty
Cœuré says ECB has no re-distributive mandate
'Distributional consequences of monetary policy are temporary, unintended, and with the view of safeguarding price stability,' ECB board member says in a speech today in Vienna
Navigating an exit from accommodative policy is ‘an art and not a science’
Participants at CEPR forum debate the challenges central banks must deal with when withdrawing unconventional policies; some express concern over rising asset prices
Discontent on BoJ board over monetary policy outlook
Three board members suggest changes to the wording of the outlook for economic activity and prices as fears emerge over effects of continued QE; Kuroda and Miyao upbeat in separate speeches
IMF paper refines measurement of monetary policy transmission
Working paper breaks monetary policy into endogenous and exogenous changes, finding this is an important distinction for explaining variations in policy transmission across banks
Israeli committee split over rate cut, minutes reveal
Governor Stanley Fischer used casting vote to keep May rate cut to 25bp after half the monetary committee called for a sharper reaction to tackle the appreciating shekel