Rate cut startles markets
Video: The Bank of England has cut UK interest rates to 3 per cent. Chris Giles examines the reasons behind the move
Central banks
Resources
More on FT.com
Japan says economy back in deflation
Japan says that for the first time since 2006 the economy is back in deflation, warning of the risk that price falls may put pressure on a fragile economy
Trichet warns on bank bonuses
Jean-Claude Trichet, ECB president, has issued his strongest warning yet that banks must keep pay and bonuses ‘contained’ and prepare for withdrawal of emergency support
ECB unwinds liquidity support for banks
The surprise announcement of tougher standards for asset-backed securities used as collateral highlights how far the bank is planning its ‘exit strategy’ to dismantle measures taken after last year’s collapse of Lehman Brothers
House vote puts focus on tougher Fed scrutiny
Ron Paul, the Texan Republican congressman, edges closer to realising a decades-long ambition to impose tougher congressional scrutiny on the Federal Reserve
Related content and features
Interactive
Tackling inflation
As global growth slows, we track inflation in key economies and how central banks have adjusted interest rates in response
Have your say on the interest rate cut
Is the MPC decision good news or is it time to panic?
MPC decisions charted
The Bank of England’s monetary policy committee voted at its July meeting to not expand its £125bn programme of quantitative easing, but will review its decision in August. See how MPC members have voted
Comment
US Federal Reserve: An eclectic aviary
Central banking: As the Fed seeks to guide America’s recovery, the policy hawks and doves must make nuanced judgments – and the two species are not as distinct as some think
We must not be too late with starting the Big Exit
If we stick to the zero interest rate policy for too long, we risk a degree of economic instability much more extreme and costly than the recent financial crisis, writes Wolfgang Münchau
They must plan their exits
Investors will soon face a period when they can no longer rely on central banks to backstop the financial system, writes Michael Mackenzie
Short View: Central banks
Since March, markets have been driven by a re-rating of the economic outlook as investors increasingly believe in an imminent recovery, writes Jennifer Hughes
Why the Fed should be given more powers
Last year’s financial disaster has made clear that system-wide regulation is now mandatory.The Fed is the only qualified party to take on this role by Roger Altman
New powers for Federal Reserve
The sweeping powers US Treasury secretary Timothy Geithner’s legislative proposal grants the government are what give the bill both its strengths and its weaknesses
Towards the next peak
Global economy: As demonstrated at the Fed gathering that preceded Ben Bernanke’s renomination, world central bankers know their jobs will change but diverge on what to do differently
Central banks can adapt to life below zero
At rates of minus 1 or 2 per cent, people would still opt to hold cash in deposits rather than taking the trouble to hide it under a mattress and hire round-the-clock security guards, writes Wolfgang Münchau
Blogs
What’s next for central banks
After the US Federal Reserve slashed interest rates to nearly zero, Willem Buiter asks what else can be done by the central banks? Quantitative easing and qualitative easing are next
Quantitative easing: Lessons from Japan
As the recession deepens, policy rates around the world are rapidly approaching zero and they cannot go any lower. Have central bankers run out of ammunition? Not necessarily
More stories
