Articles by Central Banking Newsdesk
Weidmann wary of monetary policy ‘being further co-opted’
Bundesbank president makes case for changes to institutional framework underpinning the monetary union, calling for discussion of ‘Maastricht plus’ and political union
FSB offers China advice on tackling shadow banking risks
Peer review team led by BoE’s Jon Cunliffe recommends establishing an inter-agency group to coordinate surveillance, among other measures designed to reduce shadow banking risks
Mexican board split on July rate decision
Minutes from the July 30 board meeting show three board members voted to hold the key rate at 3%, with one member favouring a 25bp hike and another absent
SNB reveals launch date for delayed banknote series
Roll-out of ninth banknote series to begin next year; new notes believed to include unique security features but central bank is being tight-lipped in the run up to the launch
Asian central banks opt for different strategies in wake of China devaluation
Philippines and Korea hold fire on interest rates as currencies plunge while Taiwan looks for way to ease under the radar
Public support works when big and well-aimed, study finds
Large-scale public sector support operations for distressed borrowers work best when they are large and have strong conditionality, according to DNB paper
IMF paper finds standard risk metrics perform poorly with low financial depth
Authors find ‘excess credit’ is a better early warning indicator for financial instability than credit-to-GDP where countries have limited financial depth
Markets regain confidence after PBoC officials intervene
Yi Gang and Zhang Xiaohui step in to reassure markets, helping to reverse some of the renminbi’s fall; Asian currencies also slide and Bank Indonesia takes action
Sarb research updates forecasting model
Refinements to central bank’s semi-structural general equilibrium model aim to better reflect the South African economy over the inflation-targeting period
Eurozone inflation ‘may well have’ reached turning point
ECB governing council members suspect underlying inflation reached a turning point earlier this year, but feel it is too soon to say for certain, accounts from July meeting show
Greek memo reveals commitments necessary to access bailout funds
Leaked document shows string of ‘prior actions’ government must complete before it can access up to €86 billion of euro funds
ECB paper finds fiscal targets are useful for forecasting
Ex-ante fiscal targets can convey useful information to forecasters despite the possibility of bias, researchers find
RBA’s Lowe weighs impact of wealth redistribution
Growth in land and house prices has raised and redistributed wealth in Australia, with implications for monetary policy and financial stability
Central Banking poll respondents back 'Grexit'
In a narrow majority 87 out of 155 readers say Greece should adopt a new national currency; asked about a variety of monetary systems, most backed a free-floating regime
Labour markets need good training policies, NY Fed president says
Federal Reserve of New York President William Dudley says monetary policy can help labour markets recover but that good training and placement policies are key to workforce development
Bank of Russia presses ahead with rating agency plans
Russian central bank governor Elvira Nabiullina says banking sector is ‘safe’ and economy will soon have its own financial ratings agency and electronic payment system
UK regulators spare Co-op Bank £120m fine
Bank of England and FCA ‘censure’ the troubled bank for multiple failures including not being open with regulators, but drop a £120 million fine on financial stability grounds
PBoC opens renminbi up to market forces
Latest move towards liberalisation appears to be aimed at meeting criteria for inclusion in SDR basket, but also provides stimulus to flagging economy
RBI paper explores challenges in public debt management
Research identifies a ‘narrow investor base’ as one hurdle and considers how to encourage greater participation from retail investors in the market for government securities
Lockhart says Fed liftoff is ‘close’
Atlanta Fed president highlights ‘cumulative evidence’ of economic recovery and says he is willing to sanction the first rate increase in the face of ‘mixed data’
Sarb governor airs concerns over inflation expectations
Lesetja Kganyago says the five-year inflation expectations of analysts, business people and trade unionists are ‘uncomfortably close’ to top end of inflation target
Icelandic paper looks for early-warning signals across past crises
Working paper identifies six clusters of financial crises in the country since 1875; finds macroeconomic variables give a ‘more robust warning signal’ than financial alternatives
Bank of Canada paper flags risk of spillovers from emerging to developed economies
Researchers show how a search for safe assets could transmit instability to developed economies as capital flows out of emerging markets
PBoC revamps 100 yuan note
New versions of China’s highest denomination note include improved security features to fight counterfeiting and improve machine-readability