Central Banks
Paraguayan ex-governor says central bank loans are illegal
Congress votes for interest-free advances amid dispute among ruling party’s factions
Costa Rica pauses hikes, joining Latin American trend
Central bank wants to give previous hikes time to filter into market rates
Armenia, Mauritius and West African states raise rates
Bank of Mauritius will move to new monetary policy framework in January
ECB increases rates by 50bp
Central bank will scale back APP reinvestments as Eurosystem staff raise inflation forecast
BoE raises rates 50bp as outlook marginally brightens
Two MPC members vote to keep rates on hold, as staff predict slightly lower inflation
Brazilian governor outlines digital wallet and CBDC plans
Governor says CBDC model should avoid flight from bank deposits
Currency round-up: Yellen’s signature added to US money
Singapore ends practice of printing new year notes; new coins in Canada and Ghana; and more
PBoC increases liquidity support as slowdown increases
Retail sales and property prices fell further in November while investment and production slowed
Economics Benchmarks 2022 report – evolving models
Central banks continued to develop their modelling frameworks in 2022, as some longer-term trends in governance structures and research agendas emerged from the data
Fed slows rate rises with 50bp increase
Powell stresses possibility of soft landing supported by “structural labour shortage”
Georgieva says China talks ‘fruitful’ despite limited progress
Restructuring problems are key focus for IMF and World Bank after debt levels hit new high
China needs dollar reserves to bolster renminbi – Eichengreen
Authorities must reassure global markets to make renminbi reserve currency, paper argues
BIS reveals winning design for new HQ tower
Second tower will be major addition to Basel skyline – if it gets the go-ahead
IMF approves long-term resilience loan for Rwanda
Fund urges “more decisive monetary tightening”
RBA governor has ‘no intention of resigning’
Governor Philip Lowe says bringing inflation down remains his focus
Inflation falls more than expected ahead of Fed meeting
Inflation expectations also drop, prompting calls for caution from the Fed
Renminbi in central banking focus report 2022
This year’s report looks more closely at the effect of inflation and the new free trade agreement among Asia-Pacific nations on parts of the SDR formula, with a focus on the renminbi’s share of central bank reserves.
Renminbi and the special drawing rights
What impact does the renminbi’s increased weight and the $650 billion increase in the International Monetary Fund (IMF) special drawing rights (SDR) have for the role of the Chinese currency in reserve management?
BoE to stress-test non-bank sector for first time
“Exploratory” exercise will test market liquidity as officials call for “urgent” action on non-banks
ECB paper examines effects of real rates on banks’ fragility
Level of real interest rates determines whether price or scale effects predominates, researchers find
IMF and Ghana reach initial agreement on $3 billion loan
Stricken country preparing domestic debt restructuring