Central Banks
Riksbank cuts rates in face of slowdown
Executive board votes to cut benchmark interest rate by 25 basis points to 1% and revise down forward guidance on rates; some members say actions should have gone further
Draghi says resolution framework is priority for 2013
ECB chief tells European Parliament single resolution mechanism and reforms to restore competitiveness are ‘key priorities’ for 2013; gives assurances monetary policy will not be impaired
Asic to consult on trade repositories in first quarter 2013
The Australian securities regulator is looking to consult on its trade repository plans at the end of the first quarter, with an eye to implementing the regime later in the year
Committee admits 40% of countries will miss Basel III deadline
Eight out of 19 jurisdictions will miss January 1 deadline for Basel III capital requirements; Stefan Ingves concedes some jurisdictions may still be behind at end of 2013
HKMA’s Yue on consumer education and protection
Market players, regulator and consumers all have roles to play to ensure that trust remains in financial services, says Hong Kong deputy chief executive
Banque de France paper tests policy interactions
Researchers examine optimal configurations of monetary and macro-prudential policy under different conditions; find monetary policy cannot affect financial stability in some cases
Pakistani minutes show weak economy but low inflation
State Bank of Pakistan minutes show low level of private-sector credit and declining foreign investment behind stagnant economy; inflation lower than expected
Ghana annual report details payments upgrades
Bank of Ghana notes projects implemented in 2011 to improve financial market infrastructure
CB.com poll reveals concerns over inflationary impact of QE
Majority of participants believe extraordinary monetary policy measures will cause central banks to overshoot inflation targets
BoE’s Weale urges use of more nuanced economic models
Basing models on a single representative agent risks obscuring important results, says Bank of England’s Martin Weale; alternative is greater emphasis on behavioural economics
Central Bank of Curaçao and Sint Maarten could split
The two Caribbean islands are contemplating dividing their shared central bank; Sint Maarten minister of finance keen to avoid new currency
Riksbank study tackles capital buffer challenges
Research by members of the Sveriges Riksbank’s financial department analyses the problems posed by Basel III’s counter-cyclical capital buffer
Central banks extend swap arrangements
Bank of Canada, Bank of England, European Central Bank, Swiss National Bank and US Federal Reserve extend temporary US dollar and bilateral swap agreements
Liikanen urges government to strengthen public finances
Bank of Finland governor says public debt reduction is threatened by lower-than-expected economic growth
Philippines’ inflation target will drop in 2015
Goal will decrease from 4% to 3% in line with the government’s desire for ‘disinflation’ and higher economic growth
French research says monetary policy can offset herding
Banque de France working paper says interest rate hikes can be used to eliminate asset price bubbles caused by investor herding behaviour
National Bank of Denmark chief says country should sign up to ‘more Europe’
Nils Bernstein warns that Denmark needs to maintain close integration with Europe or the country may find itself in a weaker position
Governing the central bank governors
Central banks face multiple challenges in the current market environment. But they still need to press towards better governance to build institutions that are fit for purpose
The ghost at the IMF’s Tokyo feast
Robert Pringle looks back at the main themes of the IMF’s annual meeting, which was held in October in Tokyo, and forward to prospects for 2013
The Bretton Woods transcripts
Bretton Woods was one of the world’s most important financial conferences, but one that was little known about until now
Striving for a strategic role for risk management
Risk management needs to be split from control functions to provide boards with a holistic view of qualitative and quantitative risks
Book notes: The Great Recession: Market Failure or Policy Failure?
This is a hugely important book that should be read by all central bankers, bank supervisors, politicians and newspaper editors
Book notes: Guardians of Finance
This is a book offering a useful contribution to the debate over the future of regulation. By James R Barth, Gerard Caprio Jr and Ross Levine