Central Banking
Rule of law of ‘highest relevance’ for central banks – Elderson
Economic growth requires institutional independence and strong legal framework, ECB board member says
Argentina gets reserve boost with $2 billion repo deal
BCRA also introduces measures to strengthen control over money supply
Political party calls on BoE to stop paying interest on banks’ reserves
Former bank official says Reform UK’s proposal would amount to unacceptable “breach of faith”
Quarles to lead review of FSB monitoring
Appointment of former Fed vice-chair reflects shift in focus for global body
Digital yen must be as robust as cash – BoJ deputy governor
Uchida says Japanese CBDC will need to retain public trust to same degree as notes and coins
BoE makes subtle leverage snipe at CCP cross-margining
Margin offsets might increase risk, but could also encourage more central clearing
Russia’s rates cut does not presage shift in stance
Experts say central bank remains alert to inflation risks and will maintain ultra-restrictive policy
MREL cut must be paired with more external funding – BIS’s Restoy
Reforms to resolution regime might appear technical but entail political choices, FSI chair argues
UK regulator backtracks over ban on retail crypto trading
FCA wants to allow investment in trading notes it had previously deemed harmful
Forecasting and narratives under uncertainty
Jagjit Chadha argues the Bank of England should deploy better analysis as the basis for clear communication under uncertainty
Banque de France governor declares victory over inflation
Villeroy de Galhau says France has to “spend better” to reduce debt
Should the Fed mandate collateral pre-positioning at the discount window?
Supervisor wants lenders to be ready to access central bank facilities, but formalising pre-positioning has some drawbacks
Tariffs will raise US prices throughout 2025 – Fed governor
Kugler says progress on core goods inflation has been reversed and trade policy could make things worse
Inflationary shocks hurt US labour market and output – Fed study
As real wages decline, workers search for new, less economically productive jobs, research finds
Moderate US bank stress could lead to global contagion – report
IMF study cites SVB’s collapse, which reverberated across world by pushing up US sovereign credit risk
RBI cuts rate by 50bp to 5.5%
Bank continues to loosen policy amid cooling inflation and global uncertainty
Brazil to enable recurring payment feature for Pix
BCB’s payment system will launch new function on June 16 after delay
Working group minutes: central banks seek cash cycle efficiencies
Some EME institutions are restructuring operations and promoting digital payment methods
European Central Bank reduces rates by 25bp
Lagarde hints at pause in next meeting, dispels rumours about early departure
Credit lines help firms absorb tariff shocks – BIS bulletin
Banks can stabilise economy during crises by offering on-demand liquidity, researchers say
Central bank gold buying slows in April
World Gold Council says higher prices may be behind reduced interest
ECB greenlights Bulgaria’s accession to eurozone
Politicians show cautious optimism as Bulgarian central bank governor lays out next steps
Chance of US recession lower, but still high – NY Fed study
Authors say model puts chances at 75%, compared with 83% at beginning of 2024
Jobs, not prices, are main reason for dissent on FOMC – study
Votes show unemployment in presidents’ districts is of greater concern to them than inflation