Central Banks
‘Fiscal devaluation’ not enough to solve competitiveness problems, IMF paper finds
Research finds rearranging taxes to shift the burden overseas has a muted effect on output, but may be useful as part of a broader package of structural reforms
Kocherlakota explains dissent from FOMC decision to end asset purchases
Minneapolis Fed president says downside risks to inflation outlook ‘arguably worse' than a year ago; says evidence from Japan and Europe shows need to act on 'an ongoing basis'
Split BoJ shocks markets with extra stimulus
Divided board narrowly votes in favour of a substantial boost to asset purchases; analysts note uncanny timing with government pension fund’s plan to add risk
Sarb’s Marais hails 'smooth rollout' of onshore renminbi programme
South African Reserve Bank trading government bonds, T-bills and bank bonds; deputy head of reserves hails support from PBoC on operational aspects of trading
Bulgaria hits back at EBA deposit insurance demands
Bulgarian National Bank says Bulgarian law does not give it the power to comply with EBA demands to release deposits at failed backs; EBA chair criticises apparent deceleration in process
ECB enlists asset managers to carry out ABS programme
Deutsche Bank and State Street among private sector actors that will help spur credit creation in eurozone following ‘competitive' tender procedure; no fees disclosed
FSB spotlight catches assets moving into the shadows
Shadow bank monitoring exercise shows assets stable inside the traditional banking sector but growing outside, as FSB publishes breakdown of data by jurisdiction for the first time
Central Bank of Brazil hikes rates following knife-edge election
Split MPC raises Selic rate to 11.25% in surprise decision amid ‘less favourable' inflation outlook; ‘sign inflation may be given greater priority' by re-elected government, analyst says
Bank of Canada governor highlights need to ‘incorporate uncertainty' in decision-making
Stephen Poloz says central bank uses ‘ranges rather than points' in its inflation and growth forecasts; estimates neutral rate of interest to be between 3% and 4%
Haldane laments poor grasp of international monetary system
BoE chief economist says regulators have paid insufficient heed to the global financial system as a whole; wants ‘Star Trek chair’ from which to survey the landscape
Buba research links output volatility and capital flows
Discussion paper finds countries with more volatile growth rates face greater procyclicality of capital outflows, which may be a result of precautionary saving
Uganda eyes short-term foreign liabilities as reserves measure
Deputy governor Louis Kasekende says Bank of Uganda has begun to track reserves levels against short-term foreign liabilities such as portfolio outflows; details how QE has hit reserves income
Trinidad and Tobago SWF set to gain corporate status
Incorporation will enable Heritage and Stabilisation Fund to hire staff and build capacity, says chairman Ralph Henry; ‘decent’ returns this year, he says
Fed wraps up asset purchase programme
US central bank brings era-defining policy to an end in unceremonious manner; Minneapolis Fed's Kocherlakota votes against decision
Ex-HKMA chief: China may punish Hong Kong for protests
Joseph Yam warns Hong Kong might be sidelined as a financial centre if protests continue, as Occupy Central movement enters its second month on the streets of Hong Kong
Argentinian MP tries to block new central bank governor
Leader of Argentinian opposition party files request to stop appointment of new central bank governor, saying he is ill-suited for the role and will be a ‘tool’ of the government
Zeti: Sukuk market has potential to fund infrastructure projects
Bank Negara Malaysia governor argues infrastructure projects need broader funding with sukuk markets an ‘important new source’
FSB warns of spillovers from new bank structures
Regulators in other jurisdictions fear potential knock-on impact from Liikanen, Vickers and Volcker reforms to bank structure
Norway SWF suffers weakest quarter in two years
Government Pension Fund Global returns 0.1% in third quarter following losses on European stocks; acquired several properties in EU and US
BoE’s Cunliffe says odd behaviour of labour supply demands caution
Deputy governor points to possible ‘shift in the psychology’ of workers who have come to accept low pay, which he says calls for the central bank to be cautious about raising rates too soon
Productivity gains in the banking industry affect interest rates, study finds
More productive banks set lower interest rates on loans and higher rates on deposits, increasing their market share, according to a study by the Bank of Spain
RBA paper aims to reduce noise in GDP calculation
Researchers combine three measures of Australian GDP to produce a measure they say is less volatile and easier to calculate
European Commission approves Portuguese institution designed to finance SMEs
New development bank to finance SMEs until 2020, at which point the Commission will assess how the market has evolved; will have starting capital of €100 million