Interest rates
Canada cuts rate for ‘insurance’ against oil price drop
Stephen Poloz says the fall in oil prices in ‘unambiguously negative’ for the Canadian economy as central bank unveils first rate change in over four years
Summers takes Germany to task over attitude towards debt
Speaking in London, former US treasury secretary says there is need to move beyond 'Calvinist idea' that debt is bad; questions impact of QE, macro-prudential policies
SNB shocks markets by abandoning euro ceiling ahead of ECB showdown
Swiss franc sharply appreciates against the euro in the wake of the Swiss National Bank’s decision to scrap the minimum exchange rate; central bank does not rule out ad hoc interventions
Rajan catches markets off guard with unscheduled rate cut
Markets get ‘pleasant surprise’ as Reserve Bank of India unveils a rate cut outside its normal policy schedule; analysts predict further cuts to come
UK inflation drops to 0.5%
Consumer price inflation falls to its lowest level since records began, prompting Mark Carney to write his first explanatory letter to the UK chancellor; governor stresses immediate benefits
Israeli research finds monetary policy is ‘dominant factor’ on short-term yields
Paper published by Bank of Israel examines impact of monetary and fiscal policy on government bond yields; finds the influence of government debt has ‘strengthened’ in past decade
SNB expects profit of $39 billion for 2014
Foreign currency positions responsible for most of the profit for Swiss National Bank, which increased its forex reserves by 7% in December following exchange rate pressure
Chilean paper analyses recent trends in long-term interest rates
Whether interest rate normalisation will be a smooth process ‘remains to be seen’ as recent developments in fixed-income markets ‘warns of enhanced risks’, research finds
BIS paper finds US spillovers impact through long-term rates
Researchers show US monetary policy spills over into Asian economies mainly through long-term interest rates and suggest policy options
Swiss National Bank introduces negative rates
In the face of growing pressure on the Swiss franc, the SNB imposes an interest rate of -0.25% on sight deposits held at the central bank
Ruble plummets despite 650bp hike by Bank of Russia
Second interest rate increase in four days does little to stem currency's precipitous decline; analyst calls central bank's apparent reluctance to intervene in forex markets a ‘game changer'
IMF: Uganda cut policy meetings to improve forecasts
Bank of Uganda now sets policy once every two months in an effort to base decisions on "firmer" data; the ECB will hold eight meetings in 2015 with the BoE set to follow suit in 2016
Brazil’s central bank lowers expectations of further action
Brazil’s central bank says inflation will enter ‘a long period of decline’ next year, as it looks to guide inflation and interest rate expectations
Central banks should consider financial stability when setting monetary policy, finds BoJ paper
Discussion paper published by the Bank of Japan argues the risk-taking channel of monetary policy has ‘become more important’ as financial intermediation has moved to markets
Belarus central bank handed 12% inflation target
President of Belarus expects inflation to fall from 20% to 12%, while the central bank simultaneously reduces its policy rate by at least 500 basis points
Brazil hikes rate but will deploy further measures ‘sparingly’
Central Bank of Brazil increases key interest rate by 50bp to 11.75% and says it will use additional measures ‘sparingly’; economists expect tightening to stop early 2015
PBoC action ‘lays foundation’ for liberalisation
Central bank emphasises movement towards interest rate liberalisation, saying last week’s rate cut was designed to combine financial reform and monetary policy
PBoC cut fails to impress but more action on the cards
Economists say first cut in two years likely to have weak effect at best, but PBoC may have to take stronger action going forward as economy worsens
Bank of Canada weighs inflation target increase
Consideration should be given to an inflation target that is above 2%, deputy governor argues; says lower neutral interest rate could lead to ‘non-trivial’ increase in ZLB episodes
Bank Indonesia raises interest rates in ad hoc meeting after fuel price rise
In an unexpected meeting, the Bank of Indonesia decided to raise the interest rate to 7.75% to tackle inflation, after the government raised fuel prices by more than 30%
St. Louis Fed’s Bullard doubts zero lower bound
James Bullard says low inflation in the US may justify a ‘somewhat lower-than-normal’ policy rate, but not remaining at the zero lower bound
Plosser: central bankers should take ‘great care' in changing view on neutral interest rate
Distinguishing transitory from permanent changes in growth and real interest rates is a ‘tricky task', says Philadelphia Fed president and FOMC member
RBA’s Stevens highlights challenges as rates stay on hold
Monetary policy statement registers some concern over risks originating from Chinese housing, heightened volatility and a high Australian dollar, but rates kept steady
Bank of Russia hikes interest rates to stem ruble sell-off
Central bank raises key rate by 150bp to highest level since 2009 as currency reaches record low against dollar; spent $3bn propping up ruble on October 29