Inflation
Banxico board uncertain on pace of easing, minutes reveal
Members had differing views on inflation dynamics and effects of tariffs in December meeting
Turkey makes 250bp cut
MPC narrows rate corridor by 300bp as inflation shows signs of cooling
Distributions allow better state-level forecasts – RBI paper
Authors find new method incorporating inflation and expectations can cut forecast errors
Unfunded fiscal spending leads to lower real rates – research
Deglobalisation could limit ability of monetary policy to control inflation, says author
Colombia surprises markets and slows easing cycle
Quarter point cut a “strong message” of independence by central bank, analysts say
Mexico continues easing with quarter-point cut
Analysts think larger reduction is plausible but central bank stays cautious
China holds benchmark lending rates
One- and five-year loan prime rates unchanged after authorities pledge to loosen policy next year
Central Bank of the Philippines cuts policy rate by 25bp
Third reduction in a row follows Fed’s quarter-point cut
BoJ holds rates, completes broad monetary policy review
Governor admits bank has been slow to raise rates, but highlights need to assess wage data and US policy
Sweden makes further cuts, but Norway continues to hold
Riksbank reduces rates by 25bp, but Norges Bank maintains more hawkish approach
BoE holds rates as UK inflation hits eight-month high
Decision closer than expected as members unsure about implications of government budget
CNB’s Aleš Michl on tackling inflation, Friedman’s legacy and ditching DSGE
The Czech governor speaks about policy mistakes, targeting M2, diversifying into equities and gold, building new models and ending interest payments on minimum reserves
Federal Reserve cuts rates by 25bp
Powell says effects of Trump’s proposed policies, including tariffs, remain unclear
Central banks need to foster trust – ECB report
Instilling public confidence helps in achieving policy objectives and maintaining independence
Bank Indonesia holds rates after HQ raided over graft probe
Benchmark rate stays at 6% two days after offices searched over alleged misuse of CSR funds
The BoJ’s path to policy normalisation
Will the Bank of Japan be able to normalise monetary policy following its successful exit from negative rates?
BoK vows to stabilise markets with ‘all available tools’
Central bank calls for bipartisan policy co-ordination following president’s impeachment
Peru holds policy rate at 5%
Central bank stays put as inflation accelerates and rate almost reaches same level as the Fed’s
‘Inflation disagreement’ weakens US monetary policy – Fed study
Households’ inflation expectations differ from central bankers’, thus adding to post-Covid momentum
ECB cuts rates by 25bp
Eurosystem disinflation “well on track” and council “did not discuss” TPI, says Lagarde
Brazil raises rates again amid fiscal woes
Central bank tightens policy by 100bp in unanimous decision as inflation continues to overshoot