Central Banks
What can the ECB do now?
Central bank is facing coronavirus shock with limited room for further policy measures
How could the coronavirus affect the world economy?
Central banks may lack firepower, while public health readiness differs sharply between countries
Riksbank’s Breman says coronavirus does not demand looser policy yet
Swedish central bank abandoned negative rates in December; inflation declined sharply in January
ECB’s asset purchases had global spillovers – IMF research
Eurozone investors significantly rebalanced into foreign advanced-economy securities, researchers find
ECB mulls wider clearing house access to account facilities
Including CCPs in the Eurosystem may remove the need for them to seek a banking licence
Fed makes surprise rate cut
Move against coronavirus marks largest rate change since the 2008 financial crisis
BIS research finds 20% drop in active correspondent banks
Retreat from correspondent banking could drive people into “unregulated channels”, authors warn
Above-target inflation ‘essential’ for dual mandate – Chicago Fed’s Evans
Evans is second senior Fed official to back new inflation-targeting approach in recent weeks
G7 leaders avoid committing to co-ordinated virus response
Central bankers and finance ministers “stand ready”; Carney says BoE has launched contingency measures
Eurozone inflation falls to 1.2% in February
Lower energy prices were the main factor behind the decline, core inflation edged slightly higher
Asia-Pacific central banks act to cushion coronavirus shock
RBA and Bank Negara Malaysia cut rates; Bank Indonesia steps in to support markets
Trump urges Fed to act on coronavirus
Fed should “cut rate big” and follow moves made by other central banks, Trump says
Inflation targets back in the spotlight
Monetary policy can do little to offset the impact of Covid-19
Knot warns of drawbacks of negative rates
Consumers are increasing their savings rather than their consumption
Chinese banks probably concealing NPLs – Finnish paper
“Hidden NPLs” particularly common in large and well-capitalised banks, researcher argues
Major central banks ready to respond to coronavirus
Fed, ECB and Bank of Japan say they are willing to act; central bank events disrupted
Canadian mortgage tweaks may add to housing imbalances – economists
Government’s policy change likely to lower qualifying hurdle for mortgages in the near term
Ghana’s Addison on banking reform, innovation and the future of the eco
The Bank of Ghana governor speaks about the next steps in banking reform and why West Africa may need more time to start using a common currency
Book notes: After the crash, by Sharyn O’Halloran and Thomas Groll
The book seeks to identify seeds of the next crisis, and the overriding impression is a plea for more regulation
Policy responses to Covid-19
The coronavirus outbreak poses a real threat to the global economy, writes Sayuri Shirai
Green finance needs better data, Visco says
Bank of Italy’s portfolio has improved since it began examining ESG scores, governor says
RBI economists build nowcast using dynamic factor model
Model closely tracks recent slowdown in activity, authors say