Central Banks
Markets having trouble grasping ‘data-dependent' policy, says Kansas City Fed director
Getting markets to understand the concept of data-driven monetary policy remains a big challenge, according to Kansas City Fed's Troy Davig
Kenyan central bank hikes by 150bp in Njoroge’s first move
Central Bank of Kenya increases key rate for second consecutive month in first meeting with former IMF adviser Patrick Njoroge as governor
Minneapolis Fed research separates Greece and Puerto Rico debt crises
Staff report notes the debt crisis has spilled over to the private sector in Greece but not in Puerto Rico, given the latter’s inability to interfere with private external debt contracts
IMF paper identifies countries that ‘pass through’ spillovers
Individual countries can amplify, absorb or block spillovers, depending on their economic and structural characteristics, researchers at the IMF find
ECB paper finds periphery most affected by credit shortage
Peripheral economies appear to suffer a greater slowdown of productivity than their northern neighbours when facing a squeeze on credit, research published by the ECB finds
Sama publishes first financial stability report
Report indicates Saudi financial system is coping well, despite the 2014 oil price shock and continued geopolitical instability in the region; past year saw ‘significant’ regulatory change
Capital volatility fears spur talk of wider G-Sii charges
Concerns about yo-yoing capital are behind proposals to extend the higher loss absorbency requirement beyond non-traditional business
Stevens: global financial conditions remain ‘very accommodative’
Reserve Bank of Australia governor points to steady financial conditions and borrowing rates despite market fluctuations associated with China and Greece; RBA holds cash rate
People: Madigan returns to Fed board; FCA appoints retail supervisory head
Brian Madigan returns to the Federal Reserve Board as FOMC secretary; Financial Conduct Authority names Jonathan Davidson director of supervision, retail and authorisations; and more
Greece set to request new ESM bailout
Greece expected to submit new proposal to ESM in effort to unlock bailout funds; ECB appears to increase haircuts on collateral used by Greek banks to obtain emergency liquidity
IMF staff call on US to develop new macro-prudential tools
Assessment says tools that strengthen market resilience to run risks and fire sales in shadow banking sector should be a high priority; staff report recommends 2016 rate hike
Iceland’s Guðmundsson plans post-capital controls monetary redesign
‘Inflation targeting plus plus’ would help the small, open economy to pursue independent monetary policy, insulated from violent capital flows, the Icelandic governor tells Central Banking
World Bank plans to put 'de-risking' on the global agenda
Banks are reportedly shutting down the accounts of customers in 'high-risk' category; the World Bank has begun work on the problem
Richmond Fed paper examines relationship between deregulation and innovation
Working paper uses a dynamic equilibrium model to look at ATM and debit card industry in US; offers generalised findings on relationship across financial services industry
European leaders to meet as Greeks scramble to produce new proposals
Heads of state and finance ministers to meet on July 7, with Greek government expected to present new proposals; chief negotiator takes over as finance minister
Austrian central bank will shut NY office in savings drive
National Bank of Austria expects to cut expenses by €96 million in the next five years as part of ‘optimisation’ project; New York office and branches in Graz and Linz will close by 2018
Central banks expect South American inflation to stabilise
Inflation rising in several countries in South America, but central bank heads in region suggest it will ‘moderate’ when supply shocks dissipate and exchange rates normalise
Czech board expects strong growth showing
Board members at the Czech National Bank caught off guard by strong growth in first quarter, minutes show, but expect stronger-than-forecasted growth for rest of year
Solomon Islands increases flexibility of currency
Annual report reveals Central Bank of Solomon Islands scrapped its policy of restricting the movement of its currency against the US dollar on any given day, but retained peg against basket
Varoufakis out as Greeks vote No
Greek finance minister steps down despite 62.5% of voters backing the government’s position by rejecting the latest proposals; Eurogroup says ball in Greece’s court
Funds escape yo-yo effect as CFTC redefines US person
Scrapping of test means investor status will not tip offshore funds into Dodd-Frank regime