Growth
Agustín Carstens on BIS strategic priorities, innovation and central bank policy
The BIS general manager speaks about policy trade-offs at critical time, tackling NBFIs and the dearth of ‘green’ assets, tech collaboration, and why he favours Biden’s $3.5trn infrastructure bill
Foreign vulnerabilities can affect domestic growth – BoE paper
Study of ‘GDP-at-risk’ shows financial factors overseas can lead to worse outcomes locally
Paraguay’s central bank raises rates to 1.5%
MPC says monetary policy normalisation should continue in wake of rising inflation
BIS’s Borio urges return to fiscal-monetary separation
Action was necessary in crisis but could lead to “instability trap”, official says
Kazakhstan hikes main rate as food prices balloon
Government reaches into its non-monetary toolbox to help tackle inflation
RBA will not raise rates to cool housing market – Lowe
Governor says central bank is not responsible for fixing structural issues in the housing market
No IMF bias towards ‘excessive austerity’, report finds
But Independent Evaluation Office says fund has been too optimistic in its forecasts
Demand shocks can have permanent impact on US economy – Fed paper
Authors find hysteresis is an important driver of longer-term growth trend in US
Bank Indonesia tells banks to provide financing to SMEs
As much as 30% of banks’ loan books will need to be directed to small businesses
RBA delays bond purchase review until 2022
Central bank pushes back review as new Covid outbreak threatens to delay recovery
PBoC to provide 300 billion yuan to SMEs
State Council calls on central bank to step in as Delta variant shows signs of denting growth
Is the ECB’s strategy review enough?
The reformed framework may allow greater stimulus to tackle weak inflation expectations, but the Governing Council is already divided on what to do next
Central Bank of Iceland raises rates again
Above-target inflation and higher GDP growth justify second rate hike since May, MPC says
People: Kuwait’s sovereign wealth fund gets new managing director
Korean president nominates head of financial supervisor and EBRD gets new corporate strategy chief
New forward guidance is “elemental” for ECB strategy, Lane says
Chief economist implicitly disagrees with Belgian governor’s criticism of new wording
Bank of Thailand calls for additional $30 billion borrowing
Debt totalled 54% of GDP by June, putting pressure on the 60% ceiling
Eurozone returns to growth in Q2
Employment increases, but economic expansion is uneven across economies
Uganda’s growth unlikely to return to pre-pandemic levels until 2024
Central bank governor says tourism sector has been hit by Covid containment measures
Real-time payment systems for the real world
ACI Worldwide has joined forces with Mastercard to create a unique partnership capable of leading the world towards advancing the on-demand economy through payment system modernisation.
Peru hikes policy rates as inflation exceeds target
Central bank says policy is still expansionary stance as real rates stay at -3.3%
Global economy faces ‘decisive moment’ – IMF’s Gaspar and Gopinath
Policy-makers have “window of opportunity” to help those falling behind in Covid-19 recovery
OECD flags early signs of ‘moderating’ growth
Slowdown is widespread in advanced economies, but emerging markets see greater divergence
PBoC plays down surge in factory-gate prices
PPI and CPI in July both higher than expected, but central bank says pressure is “controllable”
An assessment of the ECB’s strategy review
A number of aspects of the new framework raise challenges for implementation and credibility, while the inclusion of climate change may politicise the institution, writes euro architect Otmar Issing