Articles by Central Banking Newsdesk
RBA deputy governor says record low rates are beginning to work
Philip Lowe defends six rate cuts since November 2011, saying there are signs the Australian economy is beginning to respond to the stimulus; urges patience while effects feed through
People: FSB appoints new chairs; Pakistani board reaches full strength
Three central bankers appointed to head Financial Stability Board committees; Pakistan completes drive to fill governing board; and more
Bank of England handed new remit
UK budget embeds flexibility in MPC remit; suggests the committee adopts explicit forward guidance as a new policy tool; looks to expand funding for lending scheme
French paper quantifies cost of implicit bank insurance
Research examines the cost of implicit insurance given to systemically important financial institutions by EU countries; assesses costs in terms of increased taxes
RBI cuts benchmark rate as growth falters
Reserve Bank of India cuts interest rate for second time in 2013; struggling with falling growth rates but rising inflation
Korean paper says welfare cost of inflation is ‘underestimated’
Study contends that treating assets within M1 – the measure of cash and liquid assets in the economy – as non-interest-bearing in models fails to take into account full cost of inflation
BoJ researcher finds need for heterogeneous response to credit flows
Working paper shows global common factors account for a ‘quantitatively important’ portion of cross-border credit, but vary between regions; suggests need for tailored policy responses
RBI paper develops method for estimating counterfeit volumes
Researchers redesign inverse sampling statistical method, aiming to measure extent of counterfeiting in India with ‘credible precision’
T2S chief warns regulatory inaction could damage harmonisation process
Jean-Michel Godeffroy says CSD regulation must be passed this year to avoid harmonisation delays; conference panellists raise concerns over costs, limited participation and financial transaction tax
Largest banks $270bn below Basel III core capital limits
Basel Committee finds banks would have missed CET1 requirement under Basel III by $270 billion in June 2012; IMF’s Lagarde condemns ‘uneven implementation’ of rules
Eurozone rocked by Cypriot depositor haircut plan
Markets take a hit, peripheral bond yields rise and commentators raise fears of contagious bank runs as Cypriot parliament debates plans to take 6.75% haircut from ‘insured’ depositors
Fed pays $88bn in profits to US Treasury
Federal Reserve makes large profit on securities holdings in 2012; follows warnings from Ben Bernanke and Fed researchers that remittances are not likely to remain elevated
Central banks can help promote reference rate choice, says BIS report
Bank for International Settlements working group finds money market appetite for adopting overnight reference rate; says central banks can help promote transparency
Banque de France research proposes framework to address stress-test failings
Researchers use statistical tests for detection of outliers to characterise severity and duration of stressed periods; suggests length of shock depends on the initial variables
IMF paper says competition is a motive for forex intervention by emerging markets
Study examines activity of emerging market economies in foreign exchange markets; finds competitiveness can be a motivating factor
Icelandic paper finds country's response to banking crisis was optimal
Research by Central Bank of Iceland looks at various alternatives to Iceland’s handling of the 2008 banking collapse, but finds none yield better outcomes than the baseline scenario
BIS says fundamentals lagging behind market sentiment
Quarterly review identifies ‘renewed sense of optimism’ in financial markets; also sees move away from safe havens to riskier assets as central bank easing continues
People: Kuroda confirmed; Bulgarian deputy joins government
Haruhiko Kuroda will replace Masaaki Shirakawa at the BoJ after receiving approval from parliament; Bulgarian deputy joins finance ministry in temporary switch; and more
IMF urges ‘more forceful action’ to end Europe’s woes
Report on European financial stability says situation remains ‘tenuous’ in eurozone; calls on authorities to act fast to repair balance sheets and set up banking union
Central bankers split over whether 3% leverage ratio is enough
Majority of participants in CentralBanking.com poll support implementation of Basel III; readers divided over questions of raising leverage ratio
RBNZ’s McDermott backs simple forecasts over fan charts
Reserve Bank of New Zealand assistant governor says a simple policy projection can provide clarity to overall ‘forecast story’ and the relationships between different macroeconomic variables
BoE chief economist warns against inflation complacency
Bank of England’s Spencer Dale says he is concerned by ‘dangerous talk’ suggesting MPC should focus more on growth
Shirakawa examines ways for Japan to hit 2% inflation target
Bank of Japan governor says inflation will only be beneficial if it is driven by the right factors; says improved expectations are key to restoring Japan’s growth potential
IMF report issues call to action on worsening Palestinian economy
Palestinian, Israeli and international authorities must move fast to tackle liquidity crisis, unsustainable public finances and political uncertainty in the West Bank and Gaza, staff report warns