Inflation
Book notes: Shutdown, by Adam Tooze
A useful, wide-ranging overview, showing how health and economic policies are intimately intertwined with geopolitics
Peru’s central bank continues policy tightening
Most indicators are pessimistic, central bank says, as IMF staff warn of possible currency pressure
Guinean governor’s arrest may be linked to gold dispute, say reports
Military junta’s motive for prosecuting ex-governor is currently unclear, experts say
Ukraine invasion adds to pressure on food prices
Russia and Ukraine are key global producers of wheat and sunflower products
Bank of Mauritius makes first rate hike in over 10 years
Inflation risk prompts policy-makers to begin gradual tightening cycle
MAS’s Tharman urges investor action on global instability
War, stagflation risk, climate crisis, pandemic and uneven growth create “perfect long storm”
Sudan floats currency
Decision follows adoption of single unified exchange rate
Digital money and central banks
Central banks must reflect on the monetary policy, regulatory and financial stability implications from crypto assets, stablecoins and CBDCs to stay relevant in the digital age of money
Polish central bank hikes main rate as it battles zloty weakness
Currency has fallen sharply since Russia’s invasion of Ukraine, adding to fears over high inflation
IMF urges Peru to tighten monetary policy
Fund also says FX intervention may be needed short term
Sri Lankan central bank raises rates and clashes with power company
Energy chairman says “power crisis” has been caused by unwise use of foreign exchange
Economists warn Latin America faces another lost decade
Continent is “halfway to a lost decade already”, says World Bank’s Carmen Reinhart
Bank of Canada governor says rate increase ‘was first step’
Macklem says he expects inflation to fall in second half and expectations remain anchored
IMF and Argentina reach preliminary agreement on new programme
Argentina must implement new monetary policy framework as part of $45 billion aid package
Powell says he expects March rate hike
Fed chair says FOMC is discussing agreement on shrinking balance sheet
Bundesbank raises inflation forecast
Nagel calls for policy normalisation and says Bundesbank could increase risk provisioning again
Bank of Canada raises policy rate
Hike marks end of ultra-loose policy imposed in response to Covid-19
Eurozone inflation reaches new record high of 5.8%
Energy inflation remains main factor boosting prices, at 31.7% in February
Kyrgyz central bank raises rates 150 basis points
Central bank cites “geopolitical risks”, though high inflation was problem long before war
Sanctions prevent Bank of Russia FX interventions
Governor Elvira Nabiullina says central bank has not been able to support plummeting ruble
Bank of Mexico MPC minutes stress high core inflation
Core inflation increased by 6.2% in January and has risen for 14 consecutive months
Kazakhstan orders unscheduled 325bp hike
Central banks acts under new governor as Russian invasion of Ukraine drives currency down
BIS paper estimates slack in Mexico’s informal labour market
Calculating Nairu is challenging given large unregulated sector, authors say
Commodity prices rise sharply after Russia’s invasion of Ukraine
Energy prices already account for around 50% of headline inflation in the eurozone