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Central banks may wish they’d been more careful what they’d wished for
Trend of using expensive high-yield bonds to refinance the disappearing supply of bank loans has begun
Inflation forecasts for 2023 set to be cut, but persistent price pressures continue to test rate-setters
Central bank policy of yield curve control will inevitably unravel
Ignazio Visco fears swift tightening to control inflation will damage ‘fragile economy’
Central bank not seeking to ‘break economy’ but price pressures remain sticky, warns president
Officials say they may need to raise rates to hit 4% unless they see ‘clear signals’ that core price pressures are easing
Kazuo Ueda has hinted that ‘yield curve control’ is unlikely to survive in its existing form once he takes the helm
Rise in price growth in eurozone’s largest economy triggers speculation of record-high rates
German central bank acknowledges provisions are unlikely to cover shortfall resulting from holdings of €1tn-worth of debt
Congress should hold the Fed more accountable while helping it to conquer rising prices
Obsessively watching the Fed is one thing but Tokyo and Beijing matter too
(No)
Management of demand is not efficient in dealing with supply-driven price rises: fiscal policy must play its part
While commercial lenders change behaviour when the balance sheet expands, they do not change it back when it shrinks
Money supply numbers have been sending important signals before and during the pandemic
If policy of yield control is phased out under incoming BoJ head Kazuo Ueda, a flight from foreign markets may accelerate
What will Ueda do?
Transition to world of quantitative tightening will lead to reduced liquidity, capital rationing and persistent swings in asset prices
Smaller fall in CPI than expected will increase concern over persistence of higher prices
Steep rise in borrowing costs depresses mortgage demand across eurozone
Was QE4 an expensive nothingburger?
And more on loosening financial conditions
There is a danger not just of loosening too soon but of loosening too far
With the entire credibility of central banking on the line, the focus needs to be on fighting inflation
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