Central Banks
Boston Fed president resigns, citing health
Rosengren had been accused of conflicts of interest due to real estate holdings
Biden nominates law professor for OCC
Saule Omarova favours more regulation and suggested the Fed take over deposits, alarming banks
UK looks to boost long-term investing
Working group says action needed to encourage illiquid investing without risking instability
Inequality sharpens monetary policy’s effects – ECB paper
Author analyses “inequality channel” using model with three types of heterogeneous agent
FOMC doubles ceiling for reverse repo bids
Participating institutions can now borrow up to $160 billion per bid
Authorities should consider stress-testing global supply chains – BoE paper
While global supply chains have not changed much, the shocks impacting them have, researchers say
Banks resolved in almost half of jurisdictions surveyed
Jurisdictions with more bank resolutions had higher NPL levels, benchmark exercise finds
Turkey cuts rates despite rising inflation
Central bank move comes after months of public pressure from Turkish president Erdoğan
Norges Bank becomes first in G10 to raise rates
Olsen forecasts further rise in December and report points to more hikes in 2022
RBNZ to tighten housing loan limits in November
“House prices remained unsustainable” despite earlier action, New Zealand governor Bascand says
Sectoral prices growing in importance as inflation driver – BIS paper
Monetary policy risks being “overly forceful” if it tries to respond, Borio and co-authors warn
Swedish central bank may join Eurosystem payments platforms
Sveriges Riksbank says Target2 and T2S could enhance policy but has security concerns
BoE cuts UK growth forecast
Inflation likely to stay above 4% for first half of 2022 amid supply constraints and energy squeeze – MPC
Stress tests key for financial stability – Benchmarks participants
Most Benchmarks participants conduct stress tests more than once a year, but methods vary
Brazilian central bank raises rates and promises further hikes
MPC forecasts policy rate will rise by 200 bp and cautions government against expansion
BoJ holds rates as Japan waits for new prime minister
Central bank warns of possible financial problems from persistent Covid-19
UK’s PRA ‘re-tooling’ for post-Brexit world – Woods
Chief executive says reform efforts complicated by hasty “on-shoring” of EU rules
Powell’s remarks show Fed set for November taper
Markets remain calm as analysts agree Fed is intent on cutting back asset purchases in November
Cyber security exercises useful, say benchmark participants
Over half of participants simulate cyber attacks – a quarter do so more than once a year
Agustín Carstens on BIS strategic priorities, innovation and central bank policy
The BIS general manager speaks about policy trade-offs at critical time, tackling NBFIs and the dearth of ‘green’ assets, tech collaboration, and why he favours Biden’s $3.5trn infrastructure bill