Emerging markets
US Congress fails to sign off on IMF reforms
Sweeping modernisation package put together by G-20 in 2010 stopped in its tracks as House of Representatives declines to double quota increase and thus ratify changes to fund's governing structure
Turkish banks 'sound' despite 'significant increase' in non-deposit funding, central bank says
Lenders' asset quality and capital adequacy high enough to withstand shocks according to new financial stability report; liquid FX assets cover 'half' of sector's short-term external debt
Fed taper met with calm, but questions remain
Markets take ‘expected' tapering in stride, but analysts warn of persistent emerging market vulnerabilities and changing FOMC dynamics in 2014
OTC derivatives turnover driven by 'non-dealer' contracts, says BIS
Article in latest BIS quarterly review notes share of inter-dealer trades shrunk to 35% in 2013; trading remains concentrated in major financial centres despite 'rapid' growth in EM currencies
Emerging market fundamentals mean investment still makes sense, says Sarb deputy
South African Reserve Bank deputy governor Daniel Mminele tells investor conference that recent volatility is testimony EMs increased responsiveness to changes in underlying fundamentals
Caruana flags evidence of ‘manifold’ QE spillovers
BIS general manager presents evidence of varied spillovers from advanced economies' monetary policy; says policy-makers should do more to take them into account
Emerging markets will 'suffer' as QE ends, say panellists
Guillermo Calvo, Vittorio Corbo and Maurice Obstfeld say emerging markets face a bumpy landing when Fed winds down QE, and some are better prepared than others
Belgian paper warns central bank policies could worsen financial shocks
Working paper studies optimal monetary policy configurations for price and financial stability in Eastern Europe; finds central banks may worsen credit shocks by taking action against them
Developing countries focused on financial inclusion are reshaping central banking
Efforts in developing and emerging economies to promote financial inclusion for the world’s 2.5 billion unbanked population offer lessons to their developed world peers
RBI tries to persuade foreign banks to put down roots
Revamped framework unveiled by India's central bank yesterday will make it easier for foreign lenders currently operating through branches to set up wholly owned subsidiaries in the country
Fed’s Powell downplays QE impact on emerging markets
Governor admits Fed policy has played a part in capital flows to and from emerging markets, but argues other factors are more important; follows fresh complaints from Asian economies
Central Bank of Chile cuts interest rates for first time in 18 months
Central bank cuts rate 25bp to 4.75%, amid slowing demand growth and below-target inflation; analyst says inflows, not outflows, biggest concern despite current account deficit
Central Bank of Brazil raises rates for fifth time in row
Unanimous vote hikes Selic rate to 9.5% – 2.25 percentage points higher than in April - in effort to combat inflation; Reserve Bank of India, meanwhile, provides financial system with more liquidity
‘Unprecedented' US rate normalisation is global economy's biggest challenge, says IMF
Overshooting interest rates prompted by Fed taper may expose substantial financial weaknesses in both advanced and emerging countries, warns stability report; shadow banking of particular concern
IMF’s Blanchard flags ‘yet another transition’ as emerging markets struggle
IMF chief economist admits emerging market economies have performed worse than expected; calls for central banks to focus on credibility and dismisses US default as a ‘tail risk’ event
IMF proposes automatic stabilisers to guard against hot money flows
World Economic Outlook suggests countries can shield themselves from instability caused by volatile capital flows if they foster an environment allowing residents to easily invest overseas
Emerging market volatility not a sign of crisis, says Malaysian supervisor
Emerging markets are much better prepared to deal with foreign investment outflows than in the past, says Securities Commission Malaysia chairman
Bank of Mexico deputy welcomes QE taper
Manuel Sánchez singles out downshift in yield curves pushing domestic interest rates for different maturities to all-time lows as the biggest effect of lax monetary conditions on emerging economies
Indonesia raises rates in unscheduled meeting to rescue the rupiah
Bank Indonesia raises interest rates in attempt to slow the fall in the value of the rupiah; observers fear the move will hit economic growth
Capital flows are 'fickle' and always have been, paper finds
Capital flow volatility is a fact of life for all economies at all points in time, say IMF researchers, who point out that bigger advanced economies are best placed to deal with ebb and flow
EM central banks in a bind as capital volatility set to worsen
Central banks in the biggest emerging market economies are bracing for ever faster outflows of capital if tomorrow's FOMC minutes continue to point to US monetary tightening
EM central banks should take cue from ‘the best in the world', says RBI governor
Duvvuri Subbarao also highlights the historical differences in mandates between EM and advanced economy central banks
Reserve Bank of India announces measures to bolster weakening rupee
In tightening move, RBI raises its Marginal Standing Facility rate to 10.25% with 'immediate effect'; currency value rebound is expected to be short-lived
IMF cuts global growth forecast as capital outflows hit EM economies
Global growth is projected to remain slightly above 3% in 2013; fund says risks of a longer growth slowdown in emerging market economies ‘have increased'