Monetary policy
RBA surprises markets with rate hold
Reserve Bank of Australia policy board leaves cash rate unchanged despite market expectation of 25-basis point cut in rates due to weak external outlook
Dominican Republic confident in new inflation target; holds rates
Central Bank of the Dominican Republic leaves rates unchanged at first meeting since introducing a new inflation targeting framework; says it will meet 5.5% inflation target by the end of 2012
Plosser bemoans 'confusion' over Fed communications
Federal Reserve Bank of Philadelphia president Charles Plosser says decision to set time frame for when rates will remain exceptionally low had created confusion over Fed's policy statement
Treasury bills are superior liquidity instruments, says IMF paper
Fund study says Treasury bills are more secure than central bank bills in performing debt and liquidity management functions
Central Bank of Turkey predicts inflation target overshoot until 2013
Central Bank of Turkey says inflation will not return to 5.5% target until mid-2013; officials want to prevent "unfavorable fluctuations" in economic activity by acting too soon
Sarb proposes further adjustments to open market operations
South African Reserve Bank wants to allocate amounts tendered by banks in repo auctions on a pro rata basis, to enhance efficiency of its monetary policy operations
Monetary policy can ease sovereign risk, says IMF paper
Fund study shows sovereign risk becomes a critical determinant of macroeconomic outcomes if the central bank is constrained in counteracting higher risk premiums
BoE minutes show split over QE
Bank of England minutes show Monetary Policy Committee says further expansion of asset purchases is likely to be required, according to some members
Wickman-Parak on limitations of unemployment gap in setting policy
Riksbank deputy governor Barbro Wickman-Parak says role of resource utilisation and unemployment gap in monetary policy decision-making should not be overstated
Fiscal stabilisation policy is redundant, says Bullard
St Louis Federal Reserve study says fiscal policy is ill-suited as a stabilisation policy and that monetary policy, even at the zero bound, is a more effective tool
Fed reveals design of new interest rate projections
Federal Reserve releases templates to be used in next Summary of Economic Projections (SEP) to project participants' views of the appropriate path for monetary policy
Hungary drops plan to merge central bank with regulator
Hungarian prime minister Viktor Orbán says planned merger between National Bank of Hungary and Hungarian Financial Supervisory Authority has been abandoned
IMF paper on optimal monetary policy frameworks under price distortions
Fund study shows sectoral inflation targeting and output gap stabilisation outperform strict headline inflation targeting in the presence of subsidised prices for goods
Quasi-fiscal policies pose inflationary risks, warns IMF paper
Fund study says quantitative easing can lead to excessive inflation if fiscal authorities do not fully back operations to expand central banks' balance sheets
IMF’s Lipton: credit easing policy in Asia may be warranted
Fund first deputy managing director David Lipton says policy-makers in Asia may need to introduce unconventional monetary policy measures in the event of a global recession
Fed’s Plosser supports numerical inflation objective
Philadelphia Federal Reserve president Charles Plosser says Fed seeks to clarify longer-run goals and monetary policy decision-making process
IMF paper measures the natural rate of interest
Fund study says the transformed money demand and observed output gap provides the best information about the natural interest rate
Bank of Israel report highlights policy split on rate-setting body
Bank of Israel report of Narrow Forum discussion shows one member of monetary committee dissented against decision to hold rates, instead preferring a 25-basis-point cut
BoE minutes leaves option open for additional stimulus
Bank of England minutes shows MPC members believe further quantitative easing may become warranted as economic outlook deteriorates
Riksbank's Öberg calls for focus on shorter forecast horizons
Riksbank first deputy governor, Svante Öberg, says limitations in analysts’ forecasting beyond one year requires greater emphasis on near-term outlook
Monetary policy should not be overburdened: ECB’s Stark
European Central Bank executive board member Jürgen Stark says solution to sovereign debt crisis is primarily in the hands of eurozone governments not central bank
Vices of monetary policy must be addressed: ECB's Stark
European Central Bank executive board member draws on the ‘virtuous’ and ‘vicious’ relationship between globalisation and monetary policy
Central Bank of Brazil paper addresses exchange rate puzzle in emerging market economies
Central Bank of Brazil study says contraction in monetary policy does not always lead to an appreciation in the domestic currency
Carney discusses limitations of price-level targeting
Bank of Canada governor Mark Carney says adoption of price-level targets may not be beneficial in periods of turmoil