Articles by Central Banking Newsdesk
RBA research sets out stress test for households
Model emphasises dangers of relying on aggregate measures of household indebtedness when assessing financial stability and setting monetary policy
EBA offers advice on determining ‘critical functions’ in resolution
Technical advice seeks to clarify EU resolution directive in setting out exactly which parts of a bank are essential for financial stability; bank resolution plans found to be lacking in some areas
Poland publishes forecasts behind ‘final’ rate cut
Economics Institute within central bank lowers forecast for inflation in 2015 to -0.5%, down from 1% in November; MPC says last week’s cut ‘concludes’ its easing cycle
BoE draws lessons from Thomas Piketty
Income inequality has the potential to destabilise both financial and real sectors, and is increasingly garnering attention from central bankers, as the BoE’s quarterly bulletin highlights
Research considers effects of delaying fiscal consolidation on GDP
Working paper published by the IMF finds there are no ‘substantive gains’ to be had in GDP from delaying consolidation if multipliers are constant
Ingves lays out toolbox at Riksbank’s disposal
Swedish central bank governor says he ‘will do more if necessary’ to fight deflation, arguing ‘there are several ways to make monetary policy more expansionary’
Richmond Fed paper analyses new banks decline
If the rate of new banks continues to fall, it will have a large impact on the banking sector as well as the flow of credit in the economy, according to research published by the Richmond Fed
Central Bank of Honduras revises inflation target to 5.5%
After signing an economic agreement with the IMF last year, and in consideration of lower oil prices, the Central Bank of Honduras has adjusted its inflation target for 2015 by 50 basis points
US banks hold up under Fed stress tests
Latest annual stress tests show 31 largest bank-holding companies would lose $490 billion under the Fed’s severely adverse scenario, which has been tightened compared to 2014
RBA mulls creation of repo CCP
Australia currently lacks a CCP for clearing repos, which could be exacerbating systemic risk and impairing market functioning, but previous efforts met with little enthusiasm
Spanish deputy favours ‘moral persuasion’ in supervision
Fernando Restoy believes supervisors should have the ‘ability to influence the decisions’ of the managers of the entities it oversees through ‘moral persuasion’
British minister brands Argentina’s new Falklands banknote a ‘stunt’
The Central Bank of Argentina has issued a new 50 peso banknote featuring the Falkland Islands, which sparked criticism, with a British minister branding it a ‘stunt’
FSB-Iosco tweaks systemic shadow bank definition after criticism
Initial proposals for identifying systemic ‘non-bank non-insurers’ ran into criticism last year, with asset managers complaining rules put too much emphasis on size
UK fraud office probing Bank of England liquidity auctions
Bank of England liquidity auctions during the financial crisis of 2007 and 2008 are under investigation; Grabiner compiled an initial report before matter handed to SFO
RBA’s Lowe sees altered transmission mechanism behind low inflation
Inflation remaining stubbornly low despite record levels of monetary stimulus seems to be down to changes in the monetary transmission mechanism, deputy governor says
PBoC appoints new deputies
Guo Qingping and Fan Yifei take up roles as deputy governors at the People’s Bank of China, but one seat on the board is seemingly left open
ECB reveals flexibility in QE programme
European Central Bank releases modalities of asset purchase programme; Draghi delivers upbeat press conference underpinned by positive staff projections
French paper models flattening Philips curve
Working paper develops a two-country, new-Keynesian model to replicate the flattening of the curve in developed countries over the past 25 years, a trend widely attributed to globalisation
Ongoing reports of recovery add little to FOMC debate
Latest Beige Book shows economic activity expanding at a steady pace, while Esther George and Charles Evans take different sides in the FOMC’s inflation debate
Court rules against ECB in CCP case
European court finds ECB does not have authority to regulate securities clearing systems in the EU, upholding a UK plea against rules forcing CCPs to be located in the eurozone
BoJ’s Miyao extols virtues of open-ended QE
Outgoing policy board member says open-ended QE tends to have stronger effects than limited versions and may have additional impact via forward guidance and fiscal channels
RBI delivers second rate cut with inflation racing to target
The Reserve Bank of India surprised markets once again with an unscheduled rate cut of its key rate; analysts say this reduction shows trust in the government to maintain fiscal discipline
Sarb deputy governor fears for oil-exporting countries
The positive and negative shocks of falling oil prices are ‘asymmetric’ and the impact on oil-exporting countries could ‘elevate’ global financial stability concerns, warns Groepe
Yellen sees ‘room for improvement’ on risk management
Fed chair says banks have strengthened their risk management, internal controls and governance, but more can be done and supervisors will be ‘watching closely’