Monetary policy
Riksbank risk survey reveals rate-rise fears
Participants in Sweden’s fixed-income and forex markets raise concerns over interest rates rising faster abroad than at home; unemployment data fuels call for a rate cut in the near term
RBA minutes show rate cut decision made in spite of home loans growth
Australia's monetary policy decision-makers judged it was time to use ‘some of the scope' they have to loosen monetary policy, given the steady inflation outlook
Robert Pringle's Viewpoint: Watch what central bankers do, not what they say
Recent speeches by Ben Bernanke and Mark Carney signal a new phase in the development of central bank rhetoric. The big question is whether they preface a change in policy
IMF gives verdict on unconventional monetary policies
Report says unconventional policies seem to have delivered benefits, particularly during acute stress, but cautions that estimation is difficult and effects vary based on a host of factors
Caruana tells central banks to focus more on financial stability
BIS general manager calls for central banks to adopt a 'fully integrated macro-financial perspective' and lengthen policy horizons when financial stability concerns grow
Former MPC members warn against 'shock' QE exit
Andrew Sentance and Kate Barker warn of economic impact of the Bank of England ending its asset purchases; Sentance surprised by persistently low interest rates
Israel cuts rates and buys forex in moves to ward off ‘Dutch disease'
Unscheduled monetary policy decision by Bank of Israel cuts base rate 25bp as central bank launches a forex purchase programme to hold the shekel down after gas finds
Sri Lanka cuts rates 50bp in defiance of IMF advice
Central bank cuts benchmark interest rate by 50bp to 7% as growth stutters and inflation falls; IMF warned yesterday against ‘further easing of monetary policy in the near term'
Reserve Bank of Australia publishes monetary policy statement
RBA Monetary Policy Statement says cash rate could change further 'to foster sustainable growth and low inflation'
The case for nominal GDP targeting by central banks
Central banks have experimented with new monetary policy approaches, with nominal GDP targeting the latest idea to be put forward. Richard Werner looks at the empirical data supporting such a policy
BoJ paper suggests models may misrepresent impact of easing at ZLB
Working paper questions why many studies in monetary economics use model that does not account for zero lower bound; finds model tends to underestimate term premia
RBI paper scrutinises monetary policy transmission
Research analyses strength of monetary policy transmission in range of Indian financial markets; says it is conducted most effectively to money markets but has ‘limited’ influence on stock markets
Mersch lists monetary policy dos and don'ts
ECB board member tells Luxembourg audience monetary policy should take responsibility for ‘averting Armageddon', but there are limits to what it can do
Former BoE policy-makers demand action from Mark Carney
John Gieve says Carney is likely to introduce conditional forward guidance and expand QE; Rachel Lomax backs FPC remit that requires a “consistent message” among its members
ECB’s Cœuré says it is time to think about exit from unconventional policies
Executive board member says time is not yet right to start withdrawing extra liquidity provision, but such policies cannot be kept in place forever
ECB paper builds eurozone financial conditions indexes
Researchers confirm financial conditions differed across the eurozone before and after the crisis; gap shrinks when monetary policy variables are included in indexes
BoJ paper creates new framework for identifying monetary policy shocks
Working paper uses TVP-VAR model to identify the impact of conventional and unconventional monetary policy shocks on the real economy at the zero lower bound
IMF issues warning to Asian central banks on risk of overheating
Regional Economic Outlook says some Asian central banks may need to tighten policy to avoid stability risks; examines complicated effects of Japanese monetary easing
G-20 report says move from stabilisation to growth requires ‘difficult balancing act’
G-20 meeting report urges carefully calibrated fiscal tightening to ‘nurture’ recovery; backs accommodative monetary policy and says emerging markets should use rapid growth to build buffers
BoE’s McCafferty denies Monetary Policy Committee has ‘gone soft’
MPC member highlights positive signs for growth but says inflation is ‘more concerning’; expects inflation to remain above target but says a response is not yet necessary
Independent Scotland would face ‘significant risks’ under sterling union, says Westminster
UK government report points to drawbacks of all the currency options for an independent Scotland; refuses to back Scotland’s preference for a sterling union
UK economists divided over BoJ easing
Treasury Select Committee witnesses debate whether BoJ radical easing will overcome decade of deflation; economists fear an ‘unruly spike’ in yields when quantitative easing is unwound
SNB paper analyses relationship between monetary policy and financial integration
Study finds that monetary policy can have a larger effect on output and inflation under conditions of greater financial and trade integration
Fed’s Raskin assesses impact of inequality on monetary policy
Governor Sarah Bloom Raskin says inequality in US could affect transmission of monetary policy to real economy; predicts ‘increasingly potent’ policy as house prices rise