Interest rates
Wunsch calls for gradual ECB policy tightening
Belgian governor stresses risks posed by prolonged negative rates and QE
BIS paper challenges standard theories of term structure
“Expectation errors”, not term premia, create biased predictions of short-term rate – researchers
Chilean central bank hikes rate more than expected
Central Bank of Chile says inflation and economic activity is rising faster than its forecasts
Pierre Wunsch on inflation, forward guidance and policy tightening
The National Bank of Belgium governor speaks about over-reliance on central bank models and forward guidance, the impact of energy costs and inflation expectations, and the need to unwind unconventional monetary policies
Fed keeps investors guessing on speed and endpoint of tightening
Investors generally agree the Fed will tighten policy, but how much and when are unclear
Chilean governor leaves central bank to become finance minister
Mario Marcel led central bank through period of social unrest and Covid-19 pandemic
Monetary policy impacts financial stability – BIS paper
“Leaning against” booms may be better goal than strict inflation targeting, say researchers
People’s Bank of China continues rate cuts
Cuts follow weaker growth figures as deputy governor promises stable credit growth
Norges Bank signals March rate hike
Last MPC meeting under Olsen says economy needs says “gradual normalisation” of policy
Sweden inflation hits highest level in 28 years
Rise likely to boost hawkish positions at next Riksbank policy meeting on February 10
South Sudan central bank announces sharp fall in inflation rate
IMF credits exchange rate reforms with taming prices, while central bank cuts interest rates
Higher interest rates to challenge gold in 2022
But real rates are likely to remain low in historical terms, and gold tends to perform better with high inflation
Norway’s inflation reaches highest level since 2008
Headline reading reaches 5.3%, while core inflation increases by 0.5% to 1.8%
DRC central bank cuts benchmark rate by 100 basis points
Central African giant continues loosening monetary policy amid growth and steady inflation
Nagel warns high inflation could last longer than expected
New Bundesbank president says monetary policy should monitor climate change risks
Peru hikes rates 50bp again
Central bank continues tightening programme begun in August
Is Latin American monetary policy still counter-cyclical?
Latin American central banks have been tightening monetary policy aggressively. Steve Kamin examines whether this is a return to historical patterns or if it reflects a newer approach
Uruguayan central bank speeds up monetary tightening
Central bank makes fourth consecutive hike and says it expects further rises at next two meetings
Poland continues tightening in new year
Central bank adds 50bp to rates, the fourth increase in a row amid high inflation
Dominican Republic ends 2021 with 100bp hike
Central bank returns rate to pre-pandemic level as economy and inflation steadily grow
2021: The year in review
The year has seen central banks switch from recovery mode to battling inflation. Central Banking looks back at the stories that made the biggest impact in 2021
Czech policy rate continues ascent
Divided central bank board orders 100bp hike, the fifth consecutive increase
US prime fund swing pricing proposal sparks industry alarm
Some fear SEC rule would repel investors; high liquidity requirements could make funds uneconomic
Paraguay orders third 125bp hike
Central bank cites inflationary pressures and says monetary policy is still “accommodative”