Articles by Central Banking Newsdesk
ECB’s LTROs contribute to 12% drop in repo transactions
Icma report warns ‘abundant’ liquidity provided by ECB’s long-term refinancing operations is undermining the repo market in Europe; notes signs of increased risk appetite
Irish paper finds more spending could help government’s ‘precarious’ finances
Central Bank of Ireland research technical paper suggests country’s close sovereign-bank link means government spending to reduce mortgage arrears will have a greater effect than previously thought
IMF paper advocates hybrid discretion and rules-based macro-prudential policy
Researchers say discretionary systems can be gamed but rules struggle to properly account for risk; combination of ‘strong baseline’ and time-varying component gives best results
RBI governor defends 3% inflation target
Duvvuri Subbarao says India’s high inflation in recent years does not represent a ‘new normal’; rejects upping the central bank’s 3% target
National Bank of Poland says rate cuts will bring inflation up to target
Polish inflation projected to fall to 1.3% in 2013 before rising to 2.6% in 2014, after benchmark rate slashed by 150 basis points in five months
RBA targeted by cyber attacks
Reserve Bank of Australia reveals it has been the victim of cyber crime; consults with government intelligence agencies over appropriate defence strategies
Fed stress tests reveal potential for losses of $460 billion
Stress tests show banks would suffer heavy losses if another financial crisis hits, with some hovering very close to the US Federal Reserve’s minimum core capital requirements – and one falling below
Central Bank of Mexico cuts rates for first time in four years
Mexico slashes benchmark rate 50 basis points to combat falling demand and rising unemployment; Brazil and Canada hold rates steady
Lagarde sets out case for ECB rate cut and wider use of OMT
IMF managing director says ECB has room to cut rates and a European recovery is constrained by a lack of demand; suggests OMT programme could help countries ‘regain market access'
People: Bank of England names PRA board; Rwanda’s finance ministry and central bank swap chiefs
Bank of England names three board members for new prudential regulator; Claver Gatete switches National Bank of Rwanda governorship with finance minister John Rwangombwa; and more
Central Bank of Kenya denies seeking to strengthen currency
Kenyan shilling appreciates in run-up to elections; central bank says it only intervenes in exchange rate to support price stability
IMF’s Shafik says communication is central banks' ‘most important tool’
Deputy managing director Nemat Shafik believes communication is the most valuable of central banks’ unconventional policies; highlights benefits of maintaining a disciplined message
ECB researcher views liquidity shocks through enhanced DGE lens
Model aims to more accurately capture equity premia, finding that this amplifies liquidity shocks and explains a ‘significant fraction’ of business cycle fluctuations
Norway’s SWF sees large returns after ‘major strategic changes’
Annual report for 2012 reveals pension fund saw second-best performance since its creation; investments diversified away from Europe and into emerging markets
Bank of Portugal distances itself from anti-trust investigation
Portuguese central bank says investigation into banks' anti-competitive practices will not undermine the stability of the financial sector
BoE asset purchases sit on knife-edge
Bank of England rejects further asset purchases in what is assumed to be a ‘close call’; UK finance minister could alter MPC remit in upcoming budget
Draghi hints at governing council rate split
ECB holds rates again but Draghi reveals dissent among council members; central bank staff lower growth forecast
Pakistan bank governor calls for deeper shadow bank participation
Yaseen Anwar identifies 'huge opportunities' for shadow banking to capitalise on; says NBFIs must face stronger regulation in tandem
Asia-Pacific central banks tread water with rate holds
Malaysia and Indonesia join Australia and Japan in holding rates - citing healthy growth and on-target inflation
BIS researchers shine light into ‘dark’ FX markets
Working paper finds valuable information in foreign exchange order flows, giving large forex traders a significant competitive advantage
RBNZ policy to be set by ‘governing committee’
Reserve Bank of New Zealand’s four governors will make all its monetary and financial policy decisions in a new committee
Monetary policy is ‘mirror image’ of financial shocks, says ECB paper
Study finds that monetary policy is effective in mitigating financial shocks because it is capable of reversing the impact of shocks on GDP and investment
Fed’s Beige Book optimistic on labour market
Economic expansion still ‘modest or moderate’ in most Federal Reserve districts; labour market conditions improving but hiring is restrained
ECB and BoE edge closer to more easing
Commentators home in on signs the ECB is shifting towards a more dovish stance; BoE could sanction more QE after three members voted in favour last time