Central Banking staff
Follow Central Banking
Articles by Central Banking staff
How Fed decisions impact share prices
The Federal Reserve's interest rate decisions impact equity prices around the globe. However, the impact varies considerably between firms. Research from the Fed uncovers several factors which account for these variations.
Trichet defends summer rate hike
The European Central Bank (ECB) was right to raise rates by a quarter point in July as long-term inflation expectations threatened to become unanchored, Jean-Claude Trichet, the president of the European Central Bank, has said.
Regional Feds announce new chairmen
Three of the 12 regional Federal Reserves have named new chairmen for their boards of directors in 2009.
Gaza conflict demands SWF review: Oslo
Kristin Halvorsen, Norway's finance minister, has called for a review of the country's sovereign wealth fund investments as a result of the conflict in Gaza.
Unexpected cuts highlight Asian export slump
The Taiwanese and Indonesian central banks surprised markets with rate cuts on Wednesday, both made as evidence mounted that 2009 will be a tough year for Asian exporters.
Czechs say fighting crisis a priority for EU reign
The Czech Republic will strive to enhance the transparency and stability of the European Union's (EU) financial system during its six-month presidency of the common market, Prague said on Tuesday.
Fed justifies move to target range
The Federal Open Market Committee (FOMC) shifted from a key rate towards a target range owing to a lack of control over overnight market rates and to highlight the need to step up quantitative easing, the minutes of its December meeting reveal.
Canada inspired Mundell-Fleming model
Canada's experience with both an open capital account and floating exchange rate in the 1950s created the open-economy macroeconomics field, a paper from the Bank of Canada posits.
Denmark - Financial Stability Report
Denmark must implement a scheme of temporary capital injections to sound, well-managed banking institutions, says the latest Financial Stability Report from the National Bank of Denmark.
Competition lowers bank-market spreads on loans
Banks price their loans more in line with the market interest rate in countries with stronger loan market competition, says a new paper from the Bank of Spain.
France's Noyer: sound risk management crucial
Financial regulation is not a substitute for financial institutions' sound and efficient management framework, said Christian Noyer, the governor of the Banque de France.
Principles for sound stress testing
A new consultative paper from the Basel Committee on Banking Supervision presents sound principles for the governance, design and implementation of stress testing programmes at banks.
Romania's Isarescu on euro adoption
Romania's objective of joining the euro area in 2014 is within reach, said Mugur Isarescu, the governor of the National Bank of Romania.
Lower inflation gives Manila scope to cut
Inflation in the Philippines fell by almost two percentage points, affording the central bank the opportunity to consider cutting rates further.
Bernstein: €9bn needed to save Danish banks
Nils Bernstein, the governor of the Danish central bank called on the public sector to provide Dkr70 billion (€9 billion) capital to the banking sector.
Hungary likely to miss inflation target - governor
Hungary's central bank is likely to undershoot its inflation target, admitted the governor, Andras Simor.
Fed not out of ammo, says SF's Yellen
The Federal Reserve still has the tools to stimulate the economy even with interest rates at next to zero, said Janet Yellen, the president of the San Francisco Fed.
Korean rate setting to focus on recovery
Monetary policy will be geared towards restoring economic growth the Korean central bank said in a statement on monetary policy for 2009.
Polish policymaker flags half-point cut
Marian Noga, often portrayed as a hawk on the National Bank of Poland's ten-member rate-setting panel, said rates could be lowered by half a percentage point at the next meeting.
Shirakawa warns on yen strength
The governor of the Bank of Japan, Masaaki Shirakawa, highlighted the damage the yen's strength was having on the economy and served notice that the central bank stood ready to act.
Euro adds to Slovakia's New Year celebrations
Slovakia became the 16th country to join the Eurosystem on New Year's Day, an achievement few predicted would happen so soon after it joined the European Union less than five years ago.
India's central bank cuts again
The Reserve Bank of India cut rates by a percentage point for the second time in less than a month and eased deposit requirements for commercial banks in a bid to limit the impact of the financial crisis.
MPC minutes: Egypt
The Central Bank of Egypt's Monetary Policy Committee decided to keep rates unchanged at 11.5% owing to high inflation, the minutes of the meeting on 25 December explained.
Balassa-Samuelson revisited
A new paper from the Bank for International Settlements finds that Balassa-Samuelson effects are clearly present in 11 euro accession countries and that these explain around 24% of inflation differentials vis-a-vis the euro area.