Asset purchases can be an effective tool, but it is critical to minimize risks to central bank independence and price stability. Over the past couple of decades, central banks in emerging markets have made substantial progress in developing the credibility to conduct countercyclical monetary policy. During the COVID crisis, many of these central banks not

Despite sharp monetary policy tightening, financial conditions have eased around much of the globe, posing a challenge for central banks Central banks aggressively hiked interest rates last year as inflation in many countries rose to the highest levels in decades. Now, falling energy prices are reducing headline inflation and fueling optimism that monetary policy may

As the impacts of climate change continue to intensify and global shocks upend business as usual, Sub-Saharan Africa is feeling the brunt of what has been coined “the perfect storm” – a food, fuel, and fertilizer crisis exacerbated by the war in Ukraine, scarring effects from the COVID-19 pandemic, soaring inflation, rising debt, and extreme

Countries should prioritize protecting the vulnerable through targeted support while keeping a tight fiscal stance to help fight inflation Governments confront difficult trade-offs amid sharp increases in food and energy prices. Policymakers must protect low-income families from large real income losses and ensure their access to food and energy. But they must also reduce vulnerabilities

Fiscal policy can ease the task of monetary policy in reducing inflation while mitigating risks to financial stability Government support was vital to help people and firms survive pandemic lockdowns and support the economic recovery. But where inflation is high and persistent, across-the-board fiscal support is not warranted. Most governments have already dialed back pandemic

Energy prices dropped 6.2% in December, led by crude oil (-10.7%), the World Bank’s Pink Sheet reported. Non-energy prices gained slightly as declines in food were offset by increases in metals.  Agricultural prices eased 0.7% in December. Food prices fell 1.5%, led by grains (-4.3%). Beverage prices changed little while raw materials gained 2.9%. Fertilizer

The absence of clarity, as well as viability of the Ghana Financial Stability Fund (GSFS) to cushion sector actors against potential shocks from the Domestic Debt Exchange Programme (DDEP), remains a major concern, say analysts. Announced by the Finance Ministry in partnership with the Financial Stability Council, the GSFS has a seed fund value of

The fight against inflation is starting to pay off, but central banks must continue their efforts. The global economy is poised to slow this year, before rebounding next year. Growth will remain weak by historical standards, as the fight against inflation and Russia’s war in Ukraine weigh on activity. Despite these headwinds, the outlook is less gloomy