Monetary Policy
ECB expected to slow rate increases to 25bp
Lower energy prices and smoother supply chains allow a gradual tightening process
EME central banks favour social media, AE institutions prefer traditional channels
Central banks actively manage four social media platforms on average
RBA raises rates 25bp as spending falters
Outlook for household consumption uncertain as effects of tightening start to appear
Central banks most effective in monetary policy communications
All participating central banks monitor media to gauge effectiveness of communications
ECB says Hungary has infringed central bank autonomy
Frankfurt says restrictions on bond buying interfere with monetary policy
Argentina orders 1,000bp rate hike as peso struggles
Central bank tightens for second time in a week
New BoJ governor announces monetary policy review
Bank of Japan keeps ultra-loose policy unchanged at Ueda’s first policy meeting
Email, events and seminars top tools for internal communication
But few central banks have a mobile app for staff communication
Book notes: Money and the rule of law, by Peter Boettke, Alexander Salter and Daniel Smith
A largely US-focused book, which hankers for more robust rules for central banks but isn’t explicit as to what kind
BoE’s Pill: UK must accept it’s ‘worse off’
Chief economist says declining terms of trade mean purchasing power must fall
BSP governor warns against cutting rates faster than the Fed
Medalla’s comment follows central bank’s recent move to support the peso
Most AE central banks split internal and external communications
But those in emerging market economies tend to assign the tasks to a single team
Climate change and the role for central banks
Gavin Bingham, Andrew Large and Paul Fisher explain how climate change affects central banks and the competing tensions it raises in relation to policy responses
UAE launches ‘t-sukuk’ to support monetary policy
Central bank continues to implement its new dirham monetary framework
Riksbank increases rates by 50bp in divided vote
Two board members preferred a 25bp rate hike while leaving open further increases
Monetary policy can matter in poor countries – IMF paper
Study suggests changes to money supply may have impact through exchange rate
Most central banks have centralised communications teams
Result broadly similar across central banks in advanced and emerging market economies
Most communications teams outsource tasks to external providers
Outsourcing more common among central banks in emerging markets
Romer and Romer ask ‘does monetary policy matter?’ – again
Study based on “narrative approach” predicts major impact from recent Fed tightening
Email and social media most common two-way channels
Central banks in emerging market economies prefer social media to email
Brazilian governor rejects senator’s rate cut ‘plea’
Campos Neto says he leads a “technical body that makes technical decisions”
EMEs now coping better with financial market stress – BIS paper
Authorities have tackled old vulnerabilities, but trouble is springing up elsewhere
Argentina raises rates 300bp and restricts access to dollars
Peso falls sharply in April as inflation soars and BCRA struggles to obtain hard currency