Central Banks
Lautenschläger highlights ‘unbelievable heterogeneity' in eurozone housing markets
ECB board member also has ‘Christmas wish list' with instruments that will complete eurozone's macro-prudential toolkit
IMF finds Mexico well-placed to weather capital market volatility
Mexico should be able to ‘weather’ a rise in volatility, says the IMF, since the country has a healthy buffer of international reserves and ‘deep and liquid’ financial markets
Dudley says Federal Reserve could do more to be a ‘better global steward'
Permanent FOMC member suggests dollar's reserve currency status sets the US central bank apart; warns Fed funds rate hike likely to spark ‘market turbulence'
Banque de France paper studies welfare cost of uncertainty
Banque de France working paper finds that the term structure of welfare costs ‘varies substantially, predictably and with a volatility that decreases with maturity’
Carney dismisses call for helicopter money
Bank of England governor says he ‘cannot envisage any circumstance’ where direct central bank financing of government debt would be justified – but some central banks may already be doing it
BoJ’s Sato sees macro-prudential comms issue
Policy board member identifies three issues surrounding the implementation of macro-prudential measures – timing, communication and spillovers
ECB watchers cut inflation forecasts
Average forecasts in 2014 and 2015 drop to 0.5% and 1% respectively, but probability distribution reveals little concern over deflation in the eurozone
Central Bank of Costa Rica should not have a growth target, says IMF
Costa Rican authorities should 'resist pressures to expand the central bank’s mandate' to include growth, according to IMF; general manager agrees
Carney: Inflation ‘likely’ to drop below 1%
Bank of England signals rates firmly on hold into 2015 as probability rises of inflation falling below 1% in the short run; real wage growth likely to accelerate over the year
RBNZ not ready to ease LVR speed limit
Graeme Wheeler welcomes falling house price inflation, but is wary of a potential ‘resurgence’ on the back of strong immigration flows; keeps speed limit in place for now
RBI wants foreign banks to offer commercial services
R Gandhi, deputy governor of the Reserve Bank of India, argues the local economy needs foreign banks to offer commercial services, ‘to ensure further penetration of banking activities’
Poll: Central bankers favour clampdown on bitcoin
Latest Central Banking poll shows most central bankers favour regulating or banning virtual currencies, despite most institutions so far just issuing warnings or advice
FSB says ‘substantial’ work needed on resolution regimes
Financial Stability Board monitoring exercise finds that only four jurisdictions have resolution regimes in line with its Key Attributes; India among those lagging behind on legislative amendments
Netherlands at the ‘forefront’ of global reforms, says FSB
Peer review finds macro-prudential tools and crisis planning in the Netherlands are well-advanced, but FSB says authorities face challenges that provide ‘instructive test’
Chief currency dealer dismissed from Bank of England
Grabiner report unveils transcripts of conversations between BoE's Martin Mallett and market participants discussing 'matching off' trades; BoE says dismissal unrelated to FX investigation
EU court throws out Syrian governor’s sanctions challenge
Adib Mayaleh will remain under EU sanctions after court rejects his challenge to restrictions imposed in 2012; Central Bank of Iran court case ongoing
No evidence US prices were ‘more stable or less uncertain' before or after WWII
Experience shows ‘well-managed fiat regime' can achieve same level of moderation in price swings as gold standard, according to Bank of Korea working paper
ECB's Angeloni defines 'level playing field' for banks
If risk borne by taxpayers is higher than elsewhere, banks receive an implicit public subsidy that distorts the competitive playing field, says Ignazio Angeloni
Riksbank board at a loss over falling inflation, minutes suggest
Ingves says Swedish economy needs ‘two different policy rates: one for households and one for companies', while central bank casts doubt on new mortgage repayment rules
PBoC sheds light on opaque liquidity measures
Central bank confirms injection of billions of renminbi via new ‘medium-term lending facility’ as part of efforts to offset weaker foreign exchange inflows
Zimbabwe governor flags ‘increased vulnerabilities’ in financial sector
John Mangudya is wary of growing fragilities in the financial sector as liquidity shortfalls persist; pins hopes on nebulous government plan to improve economic fortunes
RBA markets head details Australian approach to securitisation
Chris Aylmer outlines RBA’s ‘very high standard’ of ABS risk management in its liquidity operations, saying the approach will evolve over time
FSB overhauls website with help from Bank of Canada
New FSB website makes it easier for user to find and filter content; Mark Carney hails the revamp as a ‘collaborative effort’ from its members, in particular the Bank of Canada