The evidence suggests Reserve Bank rate cuts don't hurt confidence
Feb 04, 2020 12:16 pm UTC| Insights & Views Central Banks Economy
When the Reserve Bank board meets today for the first time this year it is likely to leave its cash rate unchanged at the current all-time low 0.75%. Afterwards, it will announce its reasons, many of them good. But...
Quantitative easing now looks permanent – and has turned central banks into pseudo governments
Jan 24, 2020 05:38 am UTC| Insights & Views Economy Central Banks
After a pause of a few months, the worlds leading central banks are printing money again to try to bolster their economies. Commonly known as quantitative easing or QE, the European Central Bank (ECB) resumed its programme...
The next Bank of England governor must take a radically different approach to running the economy
Dec 20, 2019 03:30 am UTC| Insights & Views Central Banks
Following the monumental Conservative election victory, now is the time for the economics to work through. Mark Carney is due to leave his post as governor of the Bank of England at the end of January after six and a half...
BoJ likely to remain on hold for foreseeable future, says Capital Economics
Dec 16, 2019 07:51 am UTC| Commentary Economy
The Bank of Japan seems to have underestimated the drag on domestic demand from Octobers sales tax hike. But the global outlook has improved and the governments fiscal stimulus announcement has given policymakers a further...
Paul Volcker helped shape an independent Federal Reserve – a vital legacy that's under threat
Dec 11, 2019 03:57 am UTC| Insights & Views Central Banks Economy
Paul Volcker, who died on Dec. 8, is the poster boy for central bank independence and why it matters. One of his legacies, as you may have read in the many obituaries published since his death, is taming the runaway...
Why the Fed has no choice but to keep cutting interest rates?
Oct 31, 2019 06:13 am UTC| Insights & Views Central Banks Economy
The U.S. Federal Reserve is stuck between an apparently booming economy and a financial crisis that might be right around the corner. Thats why its decision to cut interest rates by another quarter point on Oct. 30 its...
When cutting interest rates might not help
Sep 13, 2018 21:56 pm UTC| Insights & Views Economy Central Banks
Theres a meme around official interest rates since the financial crisis, and it goes like this. Central banks have already cut them to nearly zero (or actually zero) but advanced economies are still languishing. Therefore...
‘We have thousands of Modis’: the secret behind the BJP’s enduring success in India