Central Banks
Bank of Thailand lowers growth and inflation forecasts
Central bank says Thailand’s rising debt burden and falling consumer confidence are holding back domestic demand, which in turn is slowing the pace of growth and inflation
External balance-sheet structure key in explaining the financial crisis
High gross external debt was indicator of subsequent vulnerability, according to BoE paper; finds ‘important interaction' between 'competing ‘savings glut' and ‘banking glut' hypotheses
Portuguese paper presents macroeconomic model for small economies
Researchers at the Bank of Portugal detail the features and applications of the Portuguese Economy Structural Small Open Analytical (Pessoa) model, which they say is useful for small economies in monetary union
RBA and government set out rules of engagement
Update to ‘statement on the conduct of monetary policy' says Australian government recognises the Reserve Bank's need for a strong balance sheet; RBA will pay no dividend to the government this year
Fed targets tougher LCR for US banks
Federal Reserve proposes a liquidity coverage ratio for country’s largest financial institutions that goes above and beyond the Basel III minimums
Demoted Myanmar governor ‘allowed' to quit central bank
Former governor was replaced in July by his predecessor, and made one of three vice-governors; he has now been ‘allowed to resign of his own volition', according to the presidency
Carney says BoE 'open for business' ahead of QE wind-down
Extra money for more types of collateral to be made available over longer tenors and at cheaper prices, in a bid to prepare UK banks for the end of QE; facilities could also be opened to non-banks
PMA attributes inflation disparity to Egyptian smuggling
The Palestine Monetary Authority blames the divergence between inflation in the West Bank and the Gaza Strip partly on the cheap goods being smuggled into Gaza from Egypt
Cyprus governor hits back over reports of bank re-cap ‘success fee'
Panicos Demetriades says fresh reports refer to confidential documents that have been unlawfully leaked; says central bank will not pay fees based on size of failed banks' recapitalisations
BIS paper weighs future of liquidity stress tests
Bank for International Settlements working group compiles survey on current stress-testing practices among its members, and identifies a basic framework of what future tests could include
Netherlands Bank says macro-prudential tools have ‘added value’ in currency union
Dutch central bank points to national and regional benefits of macro-prudential policy; says the ECB’s ability to intervene in an individual country’s policy will help counter the ‘inaction bias’ of policy-makers
IMF paper presents Global VAR model for analysing banking and sovereign risks
Researchers develop a global vector autoregression model that incorporates forward-looking contingent claims into its analysis of banking systems, sovereigns and macroeconomic conditions
Cœuré concerned over 'big bang’ payments migration
ECB says many member states are planning to migrate to the Single Euro Payments Area in the last quarter of the year; Benoît Cœuré points to operational risks of leaving it to the last minute
Malaysia deputy touts progress on money laundering, terrorism financing
Alshari Yahaya also notes due diligence in some instances remains inadequate and not reflective of the level of risks; says 'reward system' should reflect strong risk culture and performance
Bank of Canada holds rates despite drop in growth and inflation forecasts
Governing council holds key policy rate at 1% despite suggesting inflation will take two years to return to target; says economy is rebalancing but the process will ‘take longer than previously projected’
ECB unveils three-pronged comprehensive assessment
European Central Bank reveals the methodology behind the risk assessment, asset quality review and stress test it will use to scrutinise the eurozone’s largest banks over the next year
OECD tells Brazilian government to stay quiet on interest rate policy
New report urges government to stop commenting on future trajectory of interest rates, and set fixed terms for MPC members ‘during which they cannot be dismissed'
Australian government pours $8.5bn into RBA's reserves
New Australian government blames dwindling reserves on predecessor's demand for ‘extraordinary' dividends; records show losses were incurred due to currency movements in 2010–11
RBA proposes Australian Payments Council to strengthen industry coordination
Reserve Bank of Australia and industry body Australian Payments Clearing Association launch consultation on establishment of new payments council
Productivity still a puzzle for Bank of England MPC
Latest minutes show the monetary policy committee still does not really understand what is driving falling unemployment and rising productivity; inflation pressures seen softening slightly
Central Bank of West African States facing broken transmission mechanisms
Members of the IMF’s African department find the central bank’s ability to influence liquidity conditions in the WAEMU is restricted by the union’s ‘shallow’ financial system