Interest rates
ZLB increases equities-oil correlation – St Louis Fed research
The assets were uncorrelated until late 2008, when Fed took federal funds rate to zero
South Korea will publish data on forex interventions
US Treasury report called recent South Korean forex moves “concerning”
US rates will rise less than in previous expansions – Fed’s Williams
Higher savings and lower productivity growth means “new normal” will continue, Williams says
Mauritius postpones MPC meeting due to ‘administrative matters’
Central bank moves meeting to May 30 after prime minister appoints three new members to MPC, which is now at full capacity
US consumer inflation expectations are on the rise – NY Fed
Median one-year price rise expectations increase to 2.98% in April from 2.75% in March
Erdoğan plans tighter control over Turkish monetary policy
President says he is held accountable for policy, so should have more influence
Denomination matters for banknote demand – paper
Bank of Canada paper finds people make different choices when holding high-value banknotes
Dollar may soon give breathing space to emerging economies
Global growth, higher US debts and a tighter ECB policy could weigh on the currency
HKMA rolls out new initiatives to lure bond issuance
The three-year pilot promises to fund half of eligible bond issuance expense, up to a maximum of HK$2.5 million
Carney defends communications approach as BoE holds
Central bank criticised for apparent U-turn on rate hike; governor says majority of people in the economy are “not fixated” on the timing of a hike
RBA paper finds elusive interest rate-investment link
Authors present empirical evidence for inverse relationship between rates and investment
Voluntary reserve targets can aid transmission – Fed paper
Voluntary targets could help central banks set policy more effectively
Argentina calls on IMF for help
President Macri calls upon the IMF for financial aid as peso depreciation continues; policymakers hold rates at latest meeting
US ‘normalisation’ should be manageable for emerging economies – Powell
Turkey and Argentina grapple with weaker currencies as US Treasury yields rise
FOMC signals patience as rates stay on hold
Minutes emphasise “symmetric” target, noting inflation expectations are still “low”
IMF tells Vanuatu central bank to tighten monetary policy
Excess liquidity starting to put pressure on prices, as inflation is expected to reach 4.8% in 2018
RBA governor dispels view board ‘does nothing’
Central bank board votes to leave rates on hold, extending period to 21 months with no change; Lowe says next move is likely to be up
BoJ drops timeframe for achieving inflation target
Bank has postponed target for achieving 2% inflation six times since 2013
Riksbank delays first hike on weak inflation
Repo rate expected to remain negative until late 2019
SNB loses $6.9 billion in Q1
Higher interest rates reduced the value of sovereign bonds
Turkish central bank makes long-awaited hike
Inflation has been in double digits for several months, but the CBRT has struggled to hike
The IFF China Report 2018: Chinese financial system reform
China is focusing greater effort in tackling the build-up of risks in its banking and financial system, while also seeking to ensure credit is more effectively distributed in the real economy. At the same time it is has embraced fintech but policymakers…
China’s macroeconomy in the ‘new era’ of politics and power
Lou Jiwei, president of the National Council for Social Security Fund and former minister of finance of China, explores the three key aspects of China’s macroeconomic situation in the ‘new era’ of Chinese politics and power
BoE faces ‘uncomfortable’ approach to May meeting – Forbes
Former MPC member says pre-announcing a rate rise “could be quite dangerous”, as Mark Carney appears to row back from signalling a hike