Canada
Neutral interest rates at pre-pandemic levels, Bank of Canada finds
Nominal neutral interest rates in both countries sit between 2.25% and 3.25%
Bank of Canada holds interest rate targets
Governor expresses fear of underlying inflation becoming stuck above 2% target
Standardised FRTB leaves banks befuddled on residual risk
Benchmarking exercises find “weak consensus” among banks over notional values for exotics
Monetary policy shocks ‘amplified by financial integration’
Expansionary policy in one country leads to contraction in another, BoC researchers find
Large cap on Canadian CBDC curbs disintermediation
Central bank paper says currency will benefit rural populations underserved by commercial banks
BoE puts American spin on fix for FRTB’s govvies dilemma
Four jurisdictions find four different ways to resolve Basel market risk capital quirk
Interconnectedness of financial system ‘amplifies climate risks’
Bank of Canada research says funds’ responses to climate shocks could exacerbate related losses
Bank of Canada holds rates steady for fourth consecutive decision
Underlying inflation far too persistent, argues governor
Extreme temperature harms household finances, warns paper
Payday loan delinquency and defaults increase during extreme weather
Communicating uncertainty helps curb expectations – BoC paper
But conveying uncertainty about inflation weakens link between inflation and spending plans
Banknotes: October to December 2023
A round-up of news and salient issues that have affected central bankers in the past three months
Bank of Canada maps path to ‘fourth-generation’ models
Officials plan to create new workhorse model backed by variants focusing on key topics
Bank of Canada holds rates steady
Macklem says it’s clear the stance of policy is restricting inflationary pressures
Canada introduces first Charles III coins
Argentina updates 2,000-peso note; ECCB commemorative note honours cricketer; and more
Bank of Canada finds widespread public hostility to CBDC
Respondents expressed distrust of government and lack of interest in digital dollar
People: New governor in Sierra Leone
Brazilian president nominates two new central bank directors; new head of statistics at ECB; and more
Book notes: The economic government of the world 1933–2023, by Martin Daunton
A deep dive into the politics, personalities, trade theory and trade practice of the era, but missing a crucial element: the collapse in the US stock of money
Bank of Canada holds policy rate again at 5%
Central bank suggesting rates will stay high as inflation remains strong
Macklem warns Canadian politicians against rates lobbying
Governor says politicians’ letters could suggest ‘operational independence is at risk’
Public trust: the role of the private sector in exploring digital currency
Digital currencies that effectively protect financial privacy in lawful transactions will garner enduring confidence in the highly integrated networks of the future, argue J Christopher Giancarlo and Daniel Gorfine
DeFi could improve payments and settlement – BoC research
Inefficient legacy systems hamper the smooth completion of these operations