Central Banks
QE was ‘a step in the dark’, Rajan tells BIS
Former IMF chief economist says decision to engage in quantitative easing was based on little evidence and influenced by politics, while the full consequences remain unclear
BoE and PBoC open ‘very important’ renminbi swap line
Bank of England and People’s Bank of China establish three-year 200 billion yuan swap line; fourth largest of its kind and first in European Union
Frenkel to rejoin Bank of Israel as Fischer replacement
Former Bank of Israel governor nominated to replace Stanley Fischer; decision surprises some as deputy governor Karnit Flug appeared to have Fischer's backing for the role
PBoC maintains hard line on liquidity
People’s Bank of China insists there is a ‘reasonable’ level of liquidity in financial sector and says commercial banks are responsible for their own levels of reserves
Reserve Bank of Fiji turned to unconventional monetary policy in wake of last year’s ‘devastating’ floods
Central bank forced commercial banks to lend to agriculture and renewable energy sectors; provided funds to affordable housing projects
Malaysia’s Zeti calls for greater macro-prudential supervision of Islamic finance
Bank Negara Malaysia governor says ‘new wave of internationalisation’ of Islamic finance necessitates greater prudential supervision and cross-border cooperation
Central banks need to start tightening policy, says BIS
The Bank for International Settlements says easy monetary policy has reached the end of what it can usefully do, warning that continuing QE will exacerbate risks and delay necessary reforms
ECB paper proposes model for assessing European sovereign and bank spillovers
Working paper uses VAR model to quantify interdependencies between bank and sovereign CDS spreads
PBoC leaves banking sector sweating over liquidity squeeze
Tight credit conditions persist as the People’s Bank of China remains silent about liquidity injections into increasingly strained banking sector
ESRB issues macro-pru advice, as IMF warns over possible conflicts
European Systemic Risk Board recommends five ‘intermediate objectives' for macro-prudential policies in the EU; IMF paper warns of potential conflicts with micro-prudential measures
Central banks showing interest in renminbi assets, RBA article says
Article highlights continuing gradual move to liberalise trade in renminbi; notes many central banks have made Chinese investments, but says renminbi not yet an official reserve asset
Bangladesh governor targets stronger debt market
Atiur Rahman concerned by public and private sector reliance on bank funding, but says government should wait until after elections to issue first sovereign bond denominated in US dollars
UK's Royal Mint brings back golden guinea to mark 350th anniversary
New £2 coin designed in the style of the now disused guinea, featuring the crest of King George III; coin will enter circulation later this year
Fed's monetary policy deviates from best practice, says Bullard
Fed monetary policy has deviated from central bank best practice and should be used ‘to meet policy objectives, not calendar objectives', says St Louis Fed president
BoE's King says expectations less important than economic conditions
Bank of England governor says focus should be on creating the right economic conditions for normalising monetary policy rather than talking people through it
Bernanke plays down Jackson Hole importance
Kansas Fed's renowned symposium is a conference sponsored by just ‘one of the 12 reserve banks' says Bernanke, who declined to comment on his future following FOMC meeting
Hong Kong launches renminbi Hibor fixing
New offshore benchmark rates to be produced starting next week; HKMA to provide oversight and surveillance of contributing banks' internal systems to ensure 'integrity' of submissions
SNB reaffirms commitment to exchange rate limit
Thomas Jordan says Swiss economy continues to face 'major challenges'; Fritz Zurbrügg outlines efforts to control risks arising from the central bank's $475 billion foreign currency investments