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Monetary policy

Old Lady cuts rates to 5.5%

The Bank of England's rate-setting Monetary Policy Committee (MPC) voted on Thursday to cut its benchmark bank rate by 25 basis points after data suggested the UK economy was weakening.

UK's King gloomy on economic conundrum

Mervyn King, the governor of the Bank of England, said on Thursday that the economic outlook is "uncomfortable" because the problems of the credit crisis are now coupled with burgeoning inflationary pressures.

UK's Gieve surprises with rate cut vote

Sir John Gieve, the deputy governor at the Bank of England responsible for financial stability, was one of two dissenters who voted for a rate cut at the monetary policy committee's November meeting, minutes published on Wednesday reveal.

Mizuno wanted 25 bp hike

The minutes from the Bank of Japan's monetary policy board July meeting confirm that Atsushi Mizuno wanted to raise the overnight rate from 0.5% to 0.75%.

Fed's Plosser on housing and monetary policy

The recent reversal of the boom in housing activity and house prices in the United States has contributed to a slowdown in economic growth, says Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, in this speech. But, he argues,…

BoE's Sentance on monetary policy and business

Andrew Sentence, an external member of the Bank of England's Monetary Policy Committee (MPC) said on 10 July that the benefits to businesses from sound monetary policy "lie not in a temporary respite from higher interest rates, but in achieving a…

King outvoted over rates increase again

The Monetary Policy Committee (MPC) of the Bank of England narrowly defeated governor Mervyn King at their policy meeting in June, voting 5-4 to keep the rate unchanged at 5.5%. This was the second time that the governor was on the losing end of an MPC…

Monetary policy with imperfect knowledge

This ECB Working Paper examines the performance and robustness properties of monetary policy rules in an estimated macroeconomic model in which the economy undergoes structural change and where private agents and the central bank possess imperfect…

Banks still matter most - Bernanke

Federal Reserve Chairman, Ben Bernanke, says the Fed has retained the ability to control financing costs, despite the fact that nonbank lenders and capital markets have replaced banks as sources of credit for many households and businesses.

The political economy of the MPC - Tucker

In this keynote address to a conference on "Inflation Targeting, Central Bank Independence and Transparency" at the University of Cambridge, Paul Tucker, a member of the Bank of England's Monetary Policy Committee (MPC), discusses the political economy…

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