Central Banking
Lagarde signals Covid-19 stimulus will remain active for longer
Asset purchases and bank lending programmes will be key ECB tools; rate cut not mentioned
BoE paper offers solution to ‘paradox of flexibility’
Using shadow rate can avoid anomalous results at zero lower bound, authors say
Regulatory frameworks should apply to activities not institutions – Mester
Cleveland Fed president says policy-makers must increase co-operation and co-ordination on fintech
IMF postpones 2021 annual meeting in Morocco
Meeting will go ahead in Washington, DC, instead, with new Marrakesh date scheduled for 2022
Weak banks could reverse effects of policy rate cuts – ECB paper
Countercyclical buffers play crucial role in preventing “reversal interest rate” events, researchers find
EBA wants Basel to revisit prudential rules on software
Banking regulator set to soften capital impact of IT assets, but proposals are still out of line with US
Baltic central banks aim for joint commercial paper market
Estonian, Latvian and Lithuanian central banks to work with EBRD on creating short-term debt market
Fed examines climate risks in stability report for first time
It is “vitally important” that climate risks are “assessed and addressed”, says Lael Brainard
IMF approves $370 million credit facility for Afghanistan
New programme aims to support country’s recovery from Covid-19
BIS paper pins down causal impact of capital flows
Study based on confidential BIS data finds capital controls can help prevent overheating
China mandates deposit insurance labels
PBoC goes further in implementing deposit insurance policies to mitigate risk
Cash usage in Norway falls to 4%
Deputy governor says CBDC research is ongoing but any future system would be controlled by the central bank
Turkish finance minister quits after president fires governor
Finance minister resigns before new governor signals he will consider raising policy rates
Riksbank publishes list of companies eligible for bond purchases
List includes 50 companies and will be updated on the first weekday of the month
RBI adapting to ‘increasingly complex web’ of non-banks
Deputy governor highlights “significant change” to RBI’s regulatory approach
MAS encourages digital reporting through new grant
Firms can claim up to S$250,000 to implement new technology but only from pre-approved firms
BoE will not use climate stress tests to set capital buffers – Bailey
Andrew Bailey reveals new details of tests, with launch set for summer of 2021
Malawi’s central bank cuts interest rates as inflation outlook improves
Central bank projects annual inflation to fall below 9% this year
MAS and Bank Indonesia extend currency agreement
Leaders agree to extend bilateral repo and currency swaps arrangements for another year
Israeli reserves grow marginally in October
Portfolio grows due to FX purchases and government transfers from abroad
IMF staff suggest review of Mexico’s inflation target
Mexican government needs to abandon restrictive fiscal policy, many IMF directors say
Central banks face fintech ‘balancing act’ in Latin America – BIS paper
Region needs right institutional framework to benefit from rapid rise of fintech, authors say
Wilkins to leave Bank of Canada five months early
Replacement will need to have experience leading organisations through “change and uncertainty”
Fed holds rates as US recovery falters
Powell calls for fiscal stimulus and says further Covid-19 wave is hitting poor hardest