Monetary policy
Armenian central bank hikes rate by 1.25 percentage points
Policy-makers choose “relatively large” rate hike despite hit to growth from Russia-Ukraine conflict
US inflation continues ascent
CPI inflation reached new high of 7.9% in February
West African central bank denies devaluation
CFA franc has been pegged to European currency since establishment
Riksbank’s pandemic QE eased financing conditions, says research
Swedish central bank’s purchases boosted equities, depreciated krona and cut bond yields
Peru’s central bank continues policy tightening
Most indicators are pessimistic, central bank says, as IMF staff warn of possible currency pressure
ECB accelerates end of QE programmes
New forward guidance hints rate rise will not immediately follow end of asset purchases
Ukraine invasion adds to pressure on food prices
Russia and Ukraine are key global producers of wheat and sunflower products
Bank of Mauritius makes first rate hike in over 10 years
Inflation risk prompts policy-makers to begin gradual tightening cycle
Digital money and central banks
Central banks must reflect on the monetary policy, regulatory and financial stability implications from crypto assets, stablecoins and CBDCs to stay relevant in the digital age of money
IMF urges Peru to tighten monetary policy
Fund also says FX intervention may be needed short term
Markus Brunnermeier on the need for CBDCs
The Princeton academic co-authored a paper for the European Parliament exploring the potential pitfalls of CBDCs. But they are still needed, he says
‘Financial concerns’ impact consumption – BoE paper
Households with financial worries have a higher marginal propensity to consume, survey shows
Sri Lankan central bank raises rates and clashes with power company
Energy chairman says “power crisis” has been caused by unwise use of foreign exchange
Central banks can lean against fiscal dominance – BoC paper
Authors find monetary policy works better when conditional on fiscal policy
Bank of Canada governor says rate increase ‘was first step’
Macklem says he expects inflation to fall in second half and expectations remain anchored
IMF and Argentina reach preliminary agreement on new programme
Argentina must implement new monetary policy framework as part of $45 billion aid package
Ukrainian central bank says lenders and payments remain stable
Shevchenko warns over foreign currency pricing as Russia increases reinsurance capital
Powell says he expects March rate hike
Fed chair says FOMC is discussing agreement on shrinking balance sheet
Latin American dollar debts could cause systemic risk, paper says
Authors say the Fed risks a major policy mistake if it ignores the wider impact of tighter US policy
Bundesbank raises inflation forecast
Nagel calls for policy normalisation and says Bundesbank could increase risk provisioning again
Bank of Canada raises policy rate
Hike marks end of ultra-loose policy imposed in response to Covid-19
Eurozone inflation reaches new record high of 5.8%
Energy inflation remains main factor boosting prices, at 31.7% in February
Rethinking sovereign risk
‘Risk-free’ assets now include the possibility of complete confiscation with no recourse
Ukraine invasion raises questions for Fed policy and Latin America
Economists say some countries may benefit from higher commodity prices, but food inflation and uncertainty over Fed policy complicates the outlook