Inflation
Romania cuts by half point
National Bank of Romania reduces key rate in bid to meet inflation target
Bank of Estonia leads the way in slashing budget
Estonian central bank sets an example by cutting costs by 10%, with EEK 1 m drop in staff costs; also expects income from reserves to fall
Israeli rates rise as Fischer enforces third hike
Bank of Israel’s Stanley Fischer hikes prime rate to 1.25%
SNB steps towards exit
Swiss National Bank announces end to credit easing
Explaining wage stickiness
Bank of Estonia research suggests workforce composition, factors in individual countries and a positive relationship with competition all explain the downward rigidity of earnings
RBI’s Gokarn drops more hints of tightening
Reserve Bank of India deputy governor Subir Gokarn among a slew of officials to comment on demands of rising inflation on monetary policy; calls for a staggered approach to exit
Turkey gets sovereign debt, currency upgrades
Fitch Ratings raises Turkey’s long-term sovereign debt and currency ratings to BB+, taking them just outside investment grade
Fed behaviour matches optimal target rule
A discussion paper on the Fed and monetary policy rules argues that an optimal target rule, rather than the Taylor rule, best explains the central bank’s policy behaviour
North Korea drastically revalues currency
Reports say that the country has slashed two noughts off its currency; imposes a cap on exchanges into new money
Eurozone inflation turns positive
Official flash estimate puts November annual inflation at 0.6%; turns positive for first time since April
New household inflation measures yield “novel finding”
San Francisco Fed paper finds a negative correlation between inflation and inflation inequality
Brazilian economy on the up, minutes show
Central Bank of Brazil’s policy meeting minutes also show inflation is under control
Zero lower bound may have cost US $1.7 trillion
San Francisco Fed’s John Williams argues zero bound on interest rates has had negative effect and could continue to do so
US disinflation more likely than inflation: Fed’s Rosengren
Boston Federal Reserve’s Eric Rosengren sees inflation risks to the downside
Kenya cuts by 75 basis points
Central Bank of Kenya chops three-quarters of a point off benchmark rate
Israel makes surprise hike on inflation fears
Bank of Israel’s Fischer raises key rate to 1% from next month; cites a jump in inflation expectations even with rate hikes factored in
Hungary shaves by 50 bps as expected; widens rate corridor
National Bank of Hungary cuts key rate to 6.5% as indicated; widens rate corridor citing better market conditions
South African Reserve Bank - Monetary Policy Review
SARB report explains that downside risks to inflation from poor output and expenditure figures underpinned rate cuts between May and August
Turkey trims by quarter point
Central bank sticks to October hints by reducing size of cuts; OECD and government data show growth will pick up but unemployment still high
Czech National Bank – November Inflation Report
Monetary policy relevant inflation will be below headline inflation, which is expected to reach just above 2% towards the end of next year
Sri Lanka cuts rates
Central Bank of Sri Lanka cuts benchmark borrowing cost to 7.5%, narrows rate corridor
Bundesbank - October Monthly Report
Inflation fell further in Germany in the third quarter, partly due to sluggish investment and consumption statistics
Gold standard did Scandinavia good
Norges Bank examines monetary policy and inflation dynamic of the Scandinavian Currency Union
European Central Bank – November Monthly Bulletin
ECB’s monthly report suggests eurozone inflation rates will inch back into positive territory towards the end of the year