Monetary policy

Basel II's procyclical costs

By increasing capital requirements during economic downturns, Basel II will offset improvements in monetary policy trade-offs caused by countercyclical variations, research published by the Bank of Finland finds.

UK MPC voted 8 - 1 in favour of rate hold

David Blanchflower was the only member of the nine-strong Bank of England Monetary Policy Committee to object to the decision earlier this month to hold rates at 5.5%, opting instead for a 25 basis point cut.

British MPC faces tough choices warns deputy Gieve

The Bank of England's monetary policy committee (MPC) faces difficult decisions in the months ahead because of the dual threat of slowing growth and rising inflation, said Sir John Gieve, the deputy governor responsible for financial stability.

Stability not gradualism has influenced UK MPC

The relative paucity of rate changes at the Bank of England since the institution became independent in 1997 is down to the increased stability of inflation and output growth, rather than a rise in the degree of gradualism, research published by the Bank…

India's central bank cuts again

The Reserve Bank of India cut rates by a percentage point for the second time in less than a month and eased deposit requirements for commercial banks in a bid to limit the impact of the financial crisis.

Old Lady cuts rates to 5.5%

The Bank of England's rate-setting Monetary Policy Committee (MPC) voted on Thursday to cut its benchmark bank rate by 25 basis points after data suggested the UK economy was weakening.

UK's King gloomy on economic conundrum

Mervyn King, the governor of the Bank of England, said on Thursday that the economic outlook is "uncomfortable" because the problems of the credit crisis are now coupled with burgeoning inflationary pressures.

UK's Gieve surprises with rate cut vote

Sir John Gieve, the deputy governor at the Bank of England responsible for financial stability, was one of two dissenters who voted for a rate cut at the monetary policy committee's November meeting, minutes published on Wednesday reveal.

Mizuno wanted 25 bp hike

The minutes from the Bank of Japan's monetary policy board July meeting confirm that Atsushi Mizuno wanted to raise the overnight rate from 0.5% to 0.75%.

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