Monetary policy
PBoC action ‘lays foundation’ for liberalisation
Central bank emphasises movement towards interest rate liberalisation, saying last week’s rate cut was designed to combine financial reform and monetary policy
BoE officials defend use of labour market data in policy-making
Mark Carney and other top officials say labour market data quality is variable but always carefully examined; central bank may publish details of agents’ assessment of the economy
BIS's Hannoun calls failure to normalise policy a 'high-risk strategy'
Deputy general manager flags numerous ways in which unconventional policy may have adverse effects on the economy, both now and in the future
Bank of Canada weighs inflation target increase
Consideration should be given to an inflation target that is above 2%, deputy governor argues; says lower neutral interest rate could lead to ‘non-trivial’ increase in ZLB episodes
Kocherlakota wants Fed to mimic Bank of Canada communication
Minneapolis Fed president calls for ‘symmetric’ inflation target and two-year horizon for achieving it; says FOMC should adopt Canada-style language to characterise inflation objective
BoE to challenge orthodoxy with research ‘revolution’
More combative approach to Bank of England’s research will see economists challenge orthodoxy – including the central bank’s own policies – as often as they support it, says Andrew Haldane
Carney: Inflation ‘likely’ to drop below 1%
Bank of England signals rates firmly on hold into 2015 as probability rises of inflation falling below 1% in the short run; real wage growth likely to accelerate over the year
SBP annual report highlights year of ‘critical’ changes
Governor highlights major amendments to the State Bank of Pakistan’s operations that are currently being considered by Parliament; accounts show rise in both profits and governor’s salary
Split BoJ shocks markets with extra stimulus
Divided board narrowly votes in favour of a substantial boost to asset purchases; analysts note uncanny timing with government pension fund’s plan to add risk
BoE paper tests optimal policy when workers lose skills
Working paper asks how optimal monetary policy is affected by ‘human capital depreciation’; finds strict inflation targeting can be improved upon
BoE minutes hint at dovish shift
Committee still split 7-2 in favour of holding rates, but language takes a more dovish tone with housing market and external environment providing cause for concern
RBA’s Lowe wants more market appetite for ‘real investments’
Deputy governor says key to returning growth and monetary policy to normality is persuading investors to create new assets rather than pumping up the prices of existing ones
Fed paper models impact of return to normal rates
Discussion paper studies the likely effect of returning interest rates to more normal levels; finds different combinations of tools would have different effects on financial intermediation
Bank of Korea turns focus to stability threats after rate cut
Bank of Korea cuts rates to historic low, but shift in language indicates growing concerns over financial stability
Plosser wants Fed to follow ‘rule-like’ monetary policy
Philadelphia Fed president says constrained discretion has been shown to produce better policy-making, citing Nobel prize-winning research
Fed minutes reveal growing rifts over forward guidance
Minutes show increased debate over whether forward guidance is being used correctly; two dissenters object to phrasing of policy statement
New York Fed’s Potter fleshes out normalisation plans
Vice-president responsible for open market operations gives details on how the Fed will use interest on excess reserves and reverse repos to raise its interest rate
Rates: BoJ maintains pace of asset purchases; RBA holds steady
Bank of Japan continues pace of asset programme despite some dissenters; RBA holds rates with growth persisting below target and signs of spare capacity
Lagarde sees black clouds over monetary policy normalisation
IMF managing director underlines risk of spillover effects as Fed winds down monetary easing; says ‘asynchronous’ normalisation could come back to bite advanced economies
NBP warns ECB-Fed mismatch may impair policy-making
Polish central bank says divergence of European and US monetary policy is likely to create problems for policy-makers elsewhere, especially in small, open economies
Peru governor says Fed ‘normalisation’ will help reverse domestic slowdown
Central Bank of Peru governor Jose Velarde says Fed has ‘probably not’ done enough to limit international spill-over, but growth in the US will partially offset a slowdown in China
Higher capital requirements lead to lower lending, study by Calomiris finds
Paper published today by the Bank of England finds ‘little evidence of interaction' between monetary policy and capital requirements; studies their impact on bank lending
EMs discuss monetary responses to policy spillovers in major BIS publication
BIS publishes result of wide-ranging emerging markets survey, finding that transmission channels have changed since the crisis and opinions differ on how to respond
Polish policy-makers sceptical over major central banks' monetary policy
Minutes from the latest meeting of the Polish monetary policy council reveal doubts that QE and ultra-low rates have had the desired effect