Inflation
Carney says BoE can stay independent in face of globalisation
BoE governor says global factors ‘influence but do not dictate’ policy in speech at Jackson Hole; other economists argue central banks should do more to set policy with global dynamics in mind
Fischer upbeat on US inflation outlook at Jackson Hole
Fed vice-chair Stanley Fischer says there is ‘good reason’ to believe inflation will move higher as impact of rise in dollar and fall in oil prices dissipates
Case for higher inflation targets takes a knock at Jackson Hole
Thomas Jordan warns higher inflation ‘likely to be associated with considerable costs’ in longer run; academics see little benefit in the Federal Reserve targeting 4%
EAC officials highlight exchange rate pass-through concerns
Both central banks wary of potential for domestic inflation to increase in face of depreciating currencies; concerns over impact of external environment raised in EAC member statement
Indian central bank targets stronger rate transmission
Reserve Bank of India sees improvements in transmission of policy to money markets, but looks to strengthen credit channel as it transitions to inflation targeting framework
Lockhart still expects rate hike this year
Atlanta Fed president still expects Fed to start tightening ‘sometime’ this year but market expectations of a September hike have fallen
Venezuelan inflation still running at over 700%, expert says
Venezuela’s central bank appears to be unable to make any impact on soaring inflation levels and has not reported an inflation number this year, says Steve Hanke
Riksbank’s af Jochnick defends monetary policy stance
Interest rates cannot at present respond to growing risks in the housing market, Riksbank first deputy says, but they are helping to drive rising inflation and economic recovery in Sweden
FOMC forecasts perform better in short- than long-term, Fed paper finds
Forecasts prepared ahead of FOMC meetings from 1997-2008 considerably outperform benchmarks at short horizons, but the results are much more mixed in the longer term
Iceland hikes again amid inflation shock
Large wage increases force central bank to reassess its inflation forecast and hike rates for a second meeting in a row, with more likely to follow
Iranian deputy points to economic turnaround since Rouhani took office
Deputy governor says central bank has managed to impose new discipline on the economy, but sees room for improvement in the broader Islamic world
Eurozone inflation ‘may well have’ reached turning point
ECB governing council members suspect underlying inflation reached a turning point earlier this year, but feel it is too soon to say for certain, accounts from July meeting show
Can inflation derivatives help the ECB hit its inflation target?
The ECB could reinforce its pursuit of price stability by using inflation derivatives should current tools prove insufficient or the implementation of QE encounter technical difficulties
Nobel economist Sims on fiscal stimulus, Eurozone loss sharing and role of central banks
The Nobel laureate speaks with Christopher Jeffery about his scepticism regarding secular stagnation, the eurozone’s failings and the need for inflationary fiscal stimulus at the zero lower bound
Lockhart says Fed liftoff is ‘close’
Atlanta Fed president highlights ‘cumulative evidence’ of economic recovery and says he is willing to sanction the first rate increase in the face of ‘mixed data’
Sarb governor airs concerns over inflation expectations
Lesetja Kganyago says the five-year inflation expectations of analysts, business people and trade unionists are ‘uncomfortably close’ to top end of inflation target
US rate hike still a possibility after ‘solid’ jobs data
Federal Reserve still on track to hike rates later this year, possibly as soon as September, after latest jobs data shows 215,000 increase in nonfarm payrolls
African central banks must heed changes to inflation drivers, study argues
IMF working paper argues policy-makers in sub-Saharan Africa may have to pay more attention to inflation now demand shocks exert greater influence on prices
Bank of England faces conundrum from contradictory data
Economy appears to be giving contradictory signals as slack shrinks and wages rise but employment disappoints and inflation stays low; MPC votes for hold
BoE’s McCafferty breaks ranks in first new-style monetary policy meeting
BoE holds first monetary policy meeting under new setup and launches new format for policy communications, including inflation report redesign
Hungarian council reflects on gradual pace of rate cuts
Several council members suggest the Central Bank of Hungary was able to make a series of ‘cautious reductions’ in the interest rate because it had gained credibility
RBI and government reach ‘broad consensus’ on MPC
Raghuram Rajan says the central bank and government have found common ground on the shape of the monetary policy committee; RBI holds rates and nudges down inflation forecast
Israel grapples with high house prices and low inflation
Monetary policy report flags concerns by committee members that low interest rates may be fuelling high and rising house prices, but overall the risks to inflation are seen as more severe
IMF warns on sanctions impact as Russia cuts rates
Article IV report highlights problem of high inflation and low growth, coupled with financial instability resulting from sanctions, and calls for rate cuts to continue at a 'prudent pace'