Articles by Central Banking Newsdesk
‘Climate of greater optimism’ prevails in Spain
Financial stability report identifies many signs the economy has turned a corner and financial markets are beginning to recover, although credit to the private sector continues to fall
Riksbank paper warns forecasts often overestimate inflation
Forecasting error has grown in recent years and tends to overstate inflation, paper says, even as first deputy governor says expansionary policy has contributed to rising inflation
European Commission looks to unshackle big data
In its quest to create a digital single market the commission plans to tackle restrictions on the free movement of data; champions transition to ‘open science’
Atlanta Fed president focused on consumer spending
Dennis Lockhart says evidence of an increase in consumer spending would give him more confidence that growth is back on track in the United States
Opposition from big banks to RBA interchange fee curb
Large commercial banks and payments providers warn of damaging impact of regulating interchange fees, but smaller challenger payment systems are broadly in favour
Currency shifts could create ‘dilemma’ for Asian economies
IMF regional economic outlook warns policy-makers could face an ‘uncomfortable trade-off’ between external competitiveness and financial stability
EU risks have intensified, supervisory authorities warn
Risks have worsened since mid-2014, European supervisory authorities say; report recommends including costs arising from misconduct sanctions in future stress tests
Yellen says stability risks ‘not elevated’
Fed chair tells Christine Lagarde she does not see ‘the precursors of a financial crisis’, but singles out high stock valuations as a ‘potential danger’
IMF paper studies interest rate spreads in Pacific Island countries
Economic size, inflation, the quality of bank balance sheets and banking sector concentration influence interest rate spreads in Pacific Island countries, finds working paper
Legal assistance cost Bank of Portugal €2 million in 2014
Bank of Portugal reveals €2 million cost of legal assistance with its intervention in BES, an act it describes as ‘an unprecedented effort to safeguard financial stability’
Ingves draws lessons from Sweden’s economic history
Riksbank governor emphasises the close link between financial stability and monetary policy, while promising to take further action ‘with force’ if necessary
Deeper markets in WAEMU could boost policy transmission
Research published by the IMF finds the transmission of monetary policy is impeded by ‘shallow’ financial markets in the West African Economic and Monetary Union
NBER paper challenges Rey’s monetary policy dilemma
Authors find evidence to support the continued existence of a traditional monetary policy trilemma, casting doubt on Hélène Rey’s theory that the trilemma has broken down
RBA paper finds high social cost to counterfeiting
Researchers try to put a figure on how much counterfeit banknotes cost the economy; Australian economy suffers from lower counterfeiting than elsewhere
Bundesbank’s Dombret wants more ‘proportional’ supervisory teams
Executive board member says the joint supervisory teams in Europe should be proportionate to the size and significance of the banks they supervise
BIS paper analyses carry trades in Latin America
BIS working paper analyses currency carry trades in Latin America, the attractiveness and visibility of which have suffered in part due to regulatory changes
San Fran Fed research analyses link between inflation targeting and growth
In an economic letter, two researchers find developing economies tend not to experience the same short-term bump in growth rates as advanced economies after adopting a target
Japan shows signs of inflation rebound
Inflation creeps back into positive territory after hitting zero in February, as research by the Bank of Japan suggests inflation may have moved to a new, higher trend
Argentina cabinet chief rejects analysis in IMF report
Argentina needs ‘tighter macroeconomic policies, a weaker exchange rate and less microeconomic distortion,’ argues IMF outlook; cabinet chief dismisses analysis
BIS’s Caruana wants monetary policy to tackle stability and 'spillbacks'
The international monetary and financial system would be a lot safer if central banks set monetary policy with an eye on financial stability and cross-border impacts, BIS general manager says
IMF encourages Tonga to adopt ‘reference rate’ for inflation
IMF recommends the National Reserve Bank of Tonga adopt a reference rate of 3.5%; central bank says it needs to analyse the appropriate level before making the jump
Czech director: US dollar helps compensate for impact of oil prices on CEE countries
Luboš Komárek discusses the outlook for Central and Eastern European countries, including the favourable outlook for Germany, which is a "crucial trade partner" for many in the region
Romanian governor calls for adjustments before joining ERM II
Mugur Isărescu says aim of adopting euro in January 2019 is ‘highly ambitious’ on account of the reforms necessary to ensure sustainable convergence
Impact of Fed’s QE often larger in EMs than US, research finds
IMF working paper examines cross-border effects of unconventional monetary policy in the United States using a global vector error-correction model