Central Banks
Regtech strategy still lacking in majority of central banks
Stress testing, AML/CFT risk and reporting are top areas of application
RBA names Susan Woods as first chief operating officer
Independent review called for COO role to give senior officials more time for policy matters
Pandemic inflation fuelled by food and energy prices – BoJ study
Inflation in Japan and US driven by similar product market shocks, research finds
Politicians must be able to overrule RBA, say ex-governors
Ian Macfarlane and Bernie Fraser argue government should retain veto over Australian monetary policy
ECB suffers first loss in two decades as rate risk bites
Loss takes €7 billion chunk out of central bank’s equity
Suptech strategy adoption remains below 50%
Resource constraints and data quality issues are still barriers
Book notes: The ruble: a political history, by Ekaterina Pravilova
Indispensable reading for anyone interested in Russia and comparative, long-term historical accounts of monetary ideologies and practice
Monetary policy more effective when inflation is high – NY Fed
Study casts doubts on linear models that average out impact during periods of high and low inflation
RBI challenges IMF’s call for larger fiscal consolidation
Study argues bigger budget cuts not necessary if government focuses on development spending
BoE’s Dhingra says restrictive policy risks ‘scarring’ economy
MPC member warns that focusing on pay and services inflation could lead to “overtightening”
CBDCs may require hard limits, Netherlands Bank paper finds
Study says digital currencies could make people better off if transitions are well-managed
South Korean and Indonesian central banks hold rates
BoK says policy will remain restrictive for now, while BI highlights need to keep inflation stable
Nearly all central banks see CBDC as environmentally friendly
Few jurisdictions see initiative as comparable to banknotes’ lifecycle
Banking deserts increase in ‘majority-minority’ areas of US
Dearth of facilities disproportionately affects non-white citizens and people with disabilities
Carbon price has only ‘modest’ impact on inflation – IMF paper
Countries could use drop in energy prices to deliver on climate goals, authors say
Global house prices close to bottoming out, BIS stats show
Economists puzzle over absence of sharper correction
Thai PM calls for emergency central bank meeting to cut rates
BoT governor appears unswayed by call for monetary policy committee to meet ahead of schedule
Central banks fear CBDC will heighten cyber threats
European jurisdictions less likely to be deterred by security concerns
US CBDC ‘could enhance dollar’s international role’
Fed research claims issuing digital currency could increase demand for dollars more generally
Inflation memories pass from parents to children – research
Fear of hyperinflation influences behaviour across generational divides
Bailey hints at possible outcome of Bernanke review
Bank of England may present range of scenarios around central forecast
China makes record cut to mortgage reference rate
PBoC unveils 25bp reduction in five-year LPR in further bid to revive flagging property sector
Improving domestic payments efficiency drives retail CBDC research
Barriers to adoption include concerns around privacy, disintermediation and operational risk