Opinion/Monetary Policy
Comment: Bank of Japan update
The Bank of Japan's monetary policy committee meets this week with an interest rate decision expected on Friday. With any ideas of an imminent rate hike all but ruled out, the emerging consensus is that the shift could come in July.
Comment: Weber reveals his monetary policy stance
Axel Weber set out his thinking on the role of monetary policy and interest rates in three recent speeches. This article explores his views.
Comment: Unravelling the RBA hike
The Reserve Bank of Australia has joined the world's leading central banks in tightening mode. Last week's rate rise was largely unexpected and opinion is split over how far the central bank will go in hiking rates this year.
Comment: Trichet sounds his warning
After having made it clear that an interest rate increase was highly unlikely, the ECB's monetary policy meeting this week was all about how to signal future rate hikes pencilled in for later this year. Jean-Claude Trichet's message yesterday, 3 May, was…
Comment: Global impacts of US monetary policy
A recent ECB working paper finds that emerging markets stock markets returns can be reduced by more than 10% in response to a 100 basis point increase in US monetary policy rates. On average global equity markets fall by 3.8%.
Comment: Transparent monetary policy
The "transparency revolution" in modern monetary policy is little over a decade old. Just recently, some commentators have started to ask whether this development can go too far. Although it certainly could in theory, it probably hasn't yet.
Comment: Exposed currencies cause jitters
The Central Bank of Iceland raised interest rates by 75 basis points last week. The central bank is concerned over the possibility of further declines in the Icelandic krona, which has fallen 12% against the US dollar this year.
Comment: More of the same from Bernanke
The Fed completed its first monetary policy meeting under the chairmanship of Ben Bernanke on Tuesday 28 March. The 25 basis point increase - taking US rates to 4.75% - was a mere formality, but Fed watchers were preparing to pore over the accompanying…
G. William Miller led Fed in Carter years
According to this obituary published on Monday 20 March, former Federal Reserve chairman G. William Miller helped transform textiles company Textron Inc. into a global force, and was also active in civic life and political organisations.
Bet on the Fed pausing at 5 percent
Federal Reserve officials seem more likely to pause in raising their target for the overnight lending rate when it reaches 5 percent than to push it up to 5.5 percent, according to this article published Wednesday 15 March.
Interview with Malta's Bonello
In a recent interview, Michael C Bonello, governor of the Central Bank of Malta, talks about the challenges faced by the Maltese economy ahead of euro adoption and their implications for monetary policy.
Comment: Yellen's 'long-run' inflation target
San Francisco Fed president, Janet Yellen, who has emerged as one of Ben Bernanke's strongest allies in the inflation targeting debate at the Fed, provided further insights into what she regards as the optimal design of such a framework in a speech on…
Bank of Japan takes big risk with policy change
According to this article published on Friday 10 March, by ditching its quantitative easing policy the Bank of Japan may be making one of the biggest mistakes in its history.
Comment: Unravelling the BoJ message
The Bank of Japan put an end to its "quantitative easing" policy last week. Although the timing was slightly ahead of expectations, the move itself was widely anticipated. Attention has now turned to unravelling the implications of the central bank's new…
Comment: Has the ECB become more credible?
A recent New York Fed staff paper finds that market perceptions of the ECB's "inflation aversion" have improved significantly over the last six years, reflecting the idea that monetary policy has been guided by a dedication to price stability.
Comment: Busy week for policymakers
This week is a busy one for monetary policymakers, with policy meetings taking place in Japan, the United Kingdom, Canada, Australia, New Zealand and Indonesia. Here is a brief look at what's been on the mind of central bankers in these countries.
Comment: BoJ to end QE this week?
Friday's inflation data has added to feverish speculation that the Bank of Japan (BoJ) will end its "quantitative easing" policy later this week. However, the departure from its zero-interest rate policy is still months off and the question of the…
Comment: Inflation targetting
A number of emerging market economies have encountered problems in the early stages of inflation targetting. The latest to hit some bumps in the road in is the National Bank of Romania.
Comment: BoJ and inflation targeting
As the Bank of Japan's "quantitative easing" policy nears its end, the question of whether the central bank may soon set an explicit inflation target is being hotly debated. Although the BoJ is still resisting the adopting the framework, the tide may…
Comment: Bernanke gets more time
The new Fed chairman, Ben Bernanke, will have an extra day to listen to different opinions and pore over the latest data on the American economy at his first FOMC meeting. Yesterday's news that the March 28 meeting will be expanded could increase…
Comment: Trichet's new strategy
Jean-Claude Trichet, president of the European Central Bank (ECB), on Thursday 2 February cemented expectations of a 25 basis point rate hike next month. The manner in which he has gone about flagging the move underlines the central bank's new…
Comment: Bernanke's options kept open
Subtle changes in the wording of the Fed's latest monetary policy statement leaves new chairman, Ben Bernanke, with more wiggle-room than may have been expected. Markets will become very sensitive to incoming data and will look to Bernanke's Capitol Hill…
Fed will raise rates as Bernanke waits
The pending change in the chairmanship of the Federal Reserve won't stop the FOMC raising US interest rates by a quarter point when they meet on 31 Jan for the 14th consecutive meeting, according to this article published on Tuesday 24 January.
Comment: The Old Lady's new deputy
The Bank of England's new deputy governor for financial stability, Sir John Gieve, appeared yesterday before the Treasury Committee of the House of Commons for his appointment hearing.