The central bank is holding policy interest rates at 5.25 percent, one of the highest in Europe(compare this to our own Federal Reserve's policy rate of zero to 0.25 percent, since the end of 2008).
For example, if home inflation is above target but foreign inflation is below target, the optimal policy rule under cooperation calls for the home(real) policy rate to be lower- more accommodative- than it would be in the absence of cooperation.
Some studies show that the policy interest rates in Australia, Indonesia, Thailand, and the Philippines have been lower than the interest rates derived by the Taylor rule over the period.6 A similar relationship was observed after the global financial crisis in New Zealand and South Korea.
Although policy rates in the major economies had reached virtually zero at the end of 2008 and there remained no room for further rate reductions, credit spreads, which had jumped during the crisis, nevertheless narrowed significantly and credit availability recovered as a result of various unconventional measures.
The Bank of Japan's Unconventional Monetary Policies Prior to QQE As I just mentioned, the Bank of Japan lowered the policy rate to 0.25 percent in September 1998, reaching a situation in which the conventional monetary policy tool of setting the policy interest rate had been almost exhausted.
But policy rates are close to zero, and central bankers are reliant on“unconventional” measures to loosen monetary conditions, particularly“quantitative easing”(printing money to buy bonds) and“forward guidance”(promising to keep rates low for longer in a bid to prop up people's expectations of future inflation).
政策金利は、中立水準をわずかに下回る。
Interest rates are only slightly below neutral levels.
多くの国で政策金利は低く保たれている。
Real interest rates in many countries were kept low.
政策金利は2009年以来0.5%に据え置かれている。
Interest rates have been held at 0.5% since 2009.
この記事を投稿した時点で、政策金利は0.75%です。
At the time of this writing, their interest rate is 0.75%.
The interest rate was subsequently raised 16 times, by 25 basis points each, from June 2004 to June 2006.
米国の政策金利は現在1.25%ですが、単純に比較すると、これは日本の95年初の水準に相当します。
In the United States, the policy interest rate currently stands at 1.25 percent, which, if we make a direct comparison, is the level seen in Japan at the beginning of 1995.
A central bank is approaching the territory of fiscal policy when pursuing stimulative effects through monetary policy, since policy interest rates in major countries stay at virtually zero.
A calibration which matches Swedish bank level data suggests that a policy rate of -0.50 percent increases borrowing rates by 15 basis points and reduces output by 7 basis points.”.
As convergence to trend occurs, it will feature monetary policy normalization in some countries, but at a slow pace and to average policy rates well below those that prevailed before the crisis.
The Riksbank has more recently justified the tight policy by maintaining that a lower policy rate would have increased the household debt ratio(debt relative to disposable income) and would have increased any risks connected with the debt.
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