Counter-cyclical
Lessons learned on macro-pru policies
Tools are proving their worth although use cases vary by country; role in over-arching frameworks remains a challenge
IMF economist takes on vexed question of macro-pru calibration
Housing markets are “at a turning point”, says Laura Valderrama, and policy faces tough trade-offs
Central Bank of Chile sets first counter-cyclical buffer
BCC also warns government could face financing problems
Rethinking the CCyB
As central banks rush to replenish bank capital reserves, the countercyclical buffer may need some fine-tuning
European rates: Norway expects more tightening next year
Switzerland raises rates 50bp and Denmark raises rates in line with ECB
BoE flags global risks in ‘opaque’ commodities market
LME disruption reveals “highly leveraged” participants within financial system
BIS report highlights macro risks of inequality
Persistent inequality could weaken policy and create negative feedback mechanism, research finds
BoE tightens countercyclical buffer as risks stabilise
Banks expected to meet higher rate without cutting lending, even as capital ratios dip
Emerging nations favour different macro-prudential tools
Respondents from richer countries use counter-cyclical buffers more than emerging market peers
European central bankers see room for fiscal-monetary co-operation
Pandemic showed it was “critical” for both policies to work together, say central bank governors
BoE paper explores macroeconomic impact of macro-pru
Authors build DSGE model featuring “detailed banking sector” and sticky interest rates
Most authorities failed to build up buffers before Covid hit – Carstens
Supervisors face more problems once emergency support measures are withdrawn, says BIS chief
Is there a path between the Covid abyss and chasm of financial risk?
Macro-prudential policies are being used to prevent economies from falling into the Covid abyss while also ensuring that a correction in ever-higher asset prices do not crush the economy. Are both objectives achievable?
Weak banks could reverse effects of policy rate cuts – ECB paper
Countercyclical buffers play crucial role in preventing “reversal interest rate” events, researchers find
Bank of Jamaica weighs up CCyB
Central bank outlines proposals to tackle “excessive pro-cyclicality”
Former officials say Fed should impose tighter regime
Donald Kohn and Jeremy Stein warn of risks and say Fed should stop US banks paying dividends
Colombia reduces rates as economy faces sharp recession
Central bank reduces rate by 50 basis points to 3.25%, GDP expected to fall by 10% in Q2
Bank of Mexico rejects president’s request for early funds transfer
Central bank issues rare statement saying it must respect legal procedure for transferring funds
Swiss central bank launches unlimited refinancing facility
SNB asks federal government to reduce countercyclical buffer to 0%
BoE launches package of Covid-19 response measures
UK central bank cuts policy rate and countercyclical capital buffer, and unveils measures to support lending
FOMC discusses communication ‘escape clauses’
Fed might need “leeway” to deal with financial instability, some FOMC members say