Monetary Policy
PBoC to start additional open market operations
Move could increase importance of seven-day reverse repo rate, some analysts say
Money-supply targetters account for lowest frequency of policy meetings
Upper-middle income central banks set policy and publish reports at highest frequency
Middle income monetary policy staff salaries fall behind peers
Officials in Europe and Africa tend to earn highest average annual income
MPCs largest in inflation-targeting central banks
Government reps attend meetings in two-thirds of jurisdictions with other regimes
BNM’s Rasheed on inflation, growth and currency performance in emerging markets
Bank Negara Malaysia’s governor speaks about balancing inflation and growth, supporting the ringgit, multilateral currency settlement and greening Islamic finance
Monetary policy budget averages under $2 million annually
Budgets larger in high income, upper-middle income central banks
PBoC to start borrowing government bonds as yields fall
Analysts expect central bank to sell in secondary market to stabilise yields
Briefing, analysis and research are monetary policy officials’ top duties
Average departmental staff remains below 40 persons
Half of central banks use forecast errors to assess policy impact
Surveys of expectations widely used but surveys of trust and understanding are less common
Masaaki Shirakawa on his ‘unease’ about 2% inflation targets and lessons from Japan
The former Bank of Japan governor speaks with Christopher Jeffery about the need to properly understand the business of banking, making sound contingency plans and the BoJ’s current policy constraints
Canadian rate hikes may have lasting effects – research
Bank of Canada researchers find disposable income could decrease by up to 5% by 2027
US inflation’s last mile ‘could take several years’ – Cleveland Fed
Favourable shocks are necessary to reach 2% quickly, researcher argues
Czech National Bank cuts rates by 50 basis points
Next step likely to be a 25bp cut or a halt to easing, says central bank
Nearly 40% of central banks use targeted liquidity facilities
“Funding for lending” schemes remain widespread, though some have been wound down post-Covid
Philippine central bank holds rates and cuts inflation forecast
BSP governor signals possible August rate but refuses to comment on board member allegations
Half of central banks regularly review monetary framework
Vast majority conduct reviews but many are ad hoc
Morocco cuts interest rates after a year of holding
Inflation now below 1% due to lower food prices and tighter monetary policy
Most asset purchase programmes are winding down
Around a quarter of respondents have open APPs but most are shrinking
BIS predicts AI will be inflationary in long term
Expects accelerated inflation dynamics as firms adjust prices in response to shocks
Over 25% of central banks pre-brief government on policy decisions
Briefing patterns differ across institutions, as two central banks start practice
Laotian central bank raises rates amid high inflation
Inflation in Laos has been above 20% due to weak local currency
One-third of central banks offer liquidity to non-banks
But most keep the list of counterparties strictly limited
Thai governor clashes with government over inflation target
Sethaput warns of inflation risks amid ongoing dispute with prime minister
SNB cuts rates by 25 basis points
Decrease prompted by sub-1% inflation forecast