Central Banking
BIS paper challenges standard theories of term structure
“Expectation errors”, not term premia, create biased predictions of short-term rate – researchers
Sarb raises rates 25 basis points as inflation rises
MPC votes by four to one for hike, as inflation nears top of target range
Facebook-backed stablecoin project to wind down, report says
Project formerly known as Libra had struggled to gain regulatory approval
ECB launches climate risk stress tests
Exercise will feed into SREP and could indirectly affect lenders’ capital ratios, ECB says
Costa Rica orders second consecutive rate hike
Inflation remains within target band but risks “lean to the upside”, board says
Chilean central bank hikes rate more than expected
Central Bank of Chile says inflation and economic activity is rising faster than its forecasts
Fed signals time will be right for rate hike ‘soon’
QE set to end in March, with balance sheet to start shrinking after rates rise
Canada removes forward guidance and maintains policy rate
Economic slack was absorbed rapidly in late 2021 and early 2022, bank says
IMF pares back forecasts as world faces ‘multiple challenges’
Omicron variant, supply disruptions and inflation threaten to hold back recovery, says Gita Gopinath
Holocaust survivor reparations boosted families’ education and wages
Bank of Israel paper studies the long-term consequences of compensation received by victims
Sri Lanka raises rates as food prices rise sharply
Governor says country does not need IMF aid despite minister warning of potential energy blackout
RBA develops new method of modelling financial sector
Approach takes Martin model “beyond the existing macroeconometric frontier”, say researchers
IMF warns El Salvador on crypto
Executive board recommends “removing bitcoin’s legal tender status”
‘Flood’ of reserves may not boost liquidity, say Acharya and Rajan
Central bank balance sheet expansion could harm liquidity in some cases, former RBI officials find
Russian central bank halts FX purchases as currency slides
Ruble hits 14-month low as fears grow that Putin will invade Ukraine
BIS unveils 2022 programmes for innovation hubs
Focus is on CBDC, payments, DeFi, green finance, and first projects in London and Stockholm
Fed keeps investors guessing on speed and endpoint of tightening
Investors generally agree the Fed will tighten policy, but how much and when are unclear
MAS aims for stronger Singapore dollar to resist inflation
Faster appreciation needed due to “rapidly accumulating” inflationary pressures, authority says
Experts divided over Fed’s ‘intermediated’ approach to CBDC
Observers praise the Fed’s conservative pace but criticise aspects of its hypothetical system design
Ukrainian central bank hikes rate and warns of invasion fears
Supreme court backs NBU over PrivatBank dispute as central bank says it may raise rates again
Long-serving Bank of Uganda governor dies
Emmanuel Tumusiime-Mutebile sometimes courted controversy, but he also worked hard to defend the central bank’s autonomy
Only some firms pay attention to economic news – Bank of Canada paper
Attention is “polarised and counter-cyclical”, affecting policy impact, researchers find
People: NGFS names Menon as chair
Armenia appoints a new deputy governor and the Polish senate approves two for the MPC
Paraguayan policy-makers weigh inflation against drought and pandemic
Monetary policy committee opts for smaller rate hike as economy faces difficult outlook