Central Banks
BoE floats bonus clawback plan
Prudential Regulation Authority issues consultation on new powers to claw back bonuses in case of misconduct; Katharine Braddick reiterates ‘misgivings’ about bonus caps
RBNZ hikes rates for first time in three years
Reserve Bank of New Zealand raises its key rate to 2.75% and signals gradual tightening will continue until the rate has increased by 'about two percentage points'
Banque de France ‘is active’ in onshore renminbi market
French central bank has invested in Chinese government bonds through the onshore renminbi market; Bank of England angles for London clearing bank
MAS spearheads Bitcoin exchange regulation
Central bank is one of the first to act on regulating virtual currency exchanges, although controls are limited to money laundering and terrorist financing
Bundesbank stands firm on risks posed by non-standard policy
Annual report reiterates German concerns that non-standard policies pose a threat to central bank independence; Weidmann says wintry economic conditions are beginning to warm
Sovereign credit ratings have asymmetric impact, ECB paper finds
Working paper finds market volatility depends on whether the rating was an upgrade or a downgrade; identifies channels of contagion between countries
Cœuré delineates ‘the good the bad and the ugly’ of deleveraging
ECB executive board member says deleveraging is a double-edged sword and stresses the need for central banks to nudge financial institutions towards ‘good’ deleveraging
ECB technically prepared for negative deposit rates
The ECB has made the IT adjustments necessary to cut its deposit rate below zero, according to Bundesbank’s deputy head of markets, but the policy has its drawbacks
Nigerian deputy governor moots tax on FDI dividends and capital transfers
Kingsley Moghalu laments emerging markets' ‘Faustian bargain' with short-term portfolio investors; moots explicit measures to stem capital outflows in wake of Fed taper
Lowe airs concerns about ageing population
RBA deputy says Australian population could become ‘inherently more risk averse’ as it ages, which could make it harder for the economy to generate productivity growth
Praet says ECB minutes could spell end for forward guidance
Executive board member Peter Praet says publishing ‘accounts’ of governing council minutes might reduce the need for forward guidance
Riksbank paper examines dynamics of foreign funding by Swedish banks
Study finds currency hedging needs of institutions and companies incentivise Swedish banks to issue securities in foreign currency
Turkish central bank award aims to promote research in central banking
Turkey award follows the Carl Menger Prize for Research launched by the Bundesbank, the National Bank of Austria and the Swiss National Bank in January
Belgian governor’s term extended, successor named
Luc Coene will serve another year as governor despite reaching retirement age this week; Council of Ministers says he will be succeeded by director Jan Smets in March 2015
Cyprus names auditor-general as new central bank governor
Cypriot president moves fast to appoint Chrystalla Georghadji, the head of the state audit office, as successor to Panicos Demetriades, who resigned from his post earlier this week
Slovakian economists build new framework for estimating output gap
Researchers combine a variety of methods and information sets to ‘substantially reduce’ the uncertainty of output gap estimates on a ‘policy-relevant’ horizon
BoE to create new deputy role amid FX rigging controversy
Bank of England will create new deputy governor post to get a better grasp of financial market dynamics, Mark Carney said in hearing yesterday
Carney pledges to push BoE FX investigations 'all the way'
Bank of England governor Mark Carney pledges to get to the bottom of allegations that UK central bank condoned market manipulation in FX markets
Brazil minutes highlight inflation 'resistance' concern
Central Bank of Brazil remains concerned about 'resistance' of inflation despite more than 400bp of rate rises, latest minutes show
Target2 'filled in' balance of payments gaps during euro crisis, NY Fed paper finds
Federal Reserve Bank of New York study finds adjustment to the pullback of private capital during the euro crisis made less harsh by Target2
BoE could act as lender-of-last-resort for Scottish banks
Bank of England's Mark Carney refers to European Union's discretionary approach during euro crisis; suggests independent Scotland would need to increase foreign reserves
Dombret calls for cap on bank loans to sovereigns
Deutsche Bundesbank board member advocates a cap on the amount banks can lend to an individual sovereign, as they should never ‘put all their eggs in one basket’