Central Banks
BoE commits to improving liquidity facilities
Report says central bank could do more to ensure smooth operations
ECB’s corporate bond-buying had positive effect in Spain, research says
Stimulus reduced yields for non-financial firms and increased credit to smaller companies
Iran makes fresh attempt to free frozen assets
Central bank files complaint against Clearstream demanding assets worth $4.9 billion plus interest
Spanish paper analyses determinants of private saving
Fiscal, demographic, financial and income effects are key, researchers find
Financial regulations have been procyclical historically – research
Regulations tend to weaken during economic booms and strengthen with crisis
Higher inflation in the US could accelerate Fed’s tightening
US Treasury yields rise as GDP growth accelerates and inflation expectations increase
Bank of Tanzania must remain ‘vigilant’ during framework transition
Central bank will need to be careful as it transitions to new monetary policy framework, IMF warns, given expected recovery in spending
Bank of Canada raises rates as economy nears potential
Central bank hikes the policy interest rate 25 basis points to 1.25%
Bundesbank panellists call for change in German ‘mindset’
Mario Monti says he would like to free Germans from their economic “straightjacket”, while Benoît Cœuré hints at need for rebalancing
EU ombudsman asks Draghi to relinquish G30 seat
Prolonging the president’s membership threatens independence and public’s trust in the ECB, O’Reilly declares
Big data can give valuable labour market signal – Fed paper
High-frequency private payroll data is useful in forecasting the labour market, researchers find
BoE economists challenge conventional wisdom on yield curve
Steeper curve may not be as good for bank profitability as widely believed
Bank of Korea on hold amid policy dilemma
Strong won and benign inflation likely to keep the BoK on hold in the first half of 2018
Short-selling bans increased instability – ESRB paper
Banks’ volatility, leverage and default probability increased by bans on short-selling – researchers
People: Banque de France deputies named
Sylvie Goulard and Denis Beau take positions at Banque de France; second deputy governor at Bank of Ghana vacates post; Bolivian central bank’s board gets new vice-chair; and more
Central banks lack ‘firepower’ to combat financial crises, says report
Without interest rate cuts available, the next financial crisis could be much “longer and deeper”, Global Risk Report says
Eurozone bondholders should stay ‘on the hook’ – Dombret
Bonds issued by bailed-out governments should have maturity extended, argues Andreas Dombret
Egypt’s new banknote facility to be built by G&D
German firm awarded over $300 million for successful tender which will see “majority” of Egypt’s banknotes printed at the plant
RBI’s Acharya tells banks to deal with interest rate risk
Indian banks are vulnerable to changes in yields and have relied on regulatory forbearance for too long, deputy says
PBoC releases liquidity ahead of new year celebrations
RRR cut is expected to release liquidity to counter the seasonal tightening around Chinese new year