Central Banks
Peru governor agrees to stay on
Julio Verlade will remain in role as governor for another five-year term; president wants to maintain economic stability
Exogenous financial shocks should factor into monetary policy: Dallas Fed paper
Dallas Federal Reserve study says exogenous financial shocks should be incorporated into monetary policy decisions
Hedging strategies in periods of financial stress: IMF paper
Fund study shows that hedging strategies can reduce volatility during volatile periods but not necessarily in tranquil times
BoE makes gains on QE assets
Bank of England’s Asset Purchase Facility Fund reports £9.8 billion increase in value of balance sheet; gains channelled to UK government in form of indemnity
Bank of Finland snaps up ousted Estonian deputy governor
Märten Ross becomes adviser to the Bank of Finland’s monetary policy and research department in the area of the international economy and economic policy
South Sudan enacts central bank law
Bank of South Sudan becomes central bank; new currency to be floated in a ‘managed’ way
Uncertainty over resignation of Pakistan governor continues
State Bank of Pakistan spokesperson says governor Shahid Kardar's resignation has 'not yet' been accepted
Lebanese government renews governor’s term
Government gives Riad Salamah six more years in charge; term begins August 1
BoJ minutes highlight concerns over shortage in nuclear energy
Bank of Japan minutes warn delay in resumption of nuclear energy plants may require more 'conservative' growth forecast
Sovereign default risks amplify supply shocks: IMF paper
Fund study incorporates sovereign default risks into a general equilibrium model
Draghi says sovereign credibility must be earned
Bank of Italy governor Mario Draghi says solvency of euro area countries must be earned by putting public finances in order
Helaba withdrawal hints at 'fundamental value' in stress test results, says analyst
German bank Helaba’s withdrawal from the European stress-testing process indicates there could be 'fundamental value' in the results, an analyst says
Greece inches closer to default status
Fitch downgrades Greece’s long-term credit rating to CCC, one notch above default, in an active week for ratings agencies
Kenya reverses rate decision
Central Bank of Kenya reverses earlier rate increase on overnight discount rate but imposes restrictions on its discount window; analysts say measures amount to tightening in monetary policy
ECB paper highlights differences in EU real wage flexibility
European Central Bank study shows real wages are more flexible in Central and Eastern European economies than euro area countries
Brazil holds first Financial Stability Committee meeting
First meeting held over a month later than planned; comes in same week governor addresses New York audience for the first time and discusses rising inflation
ECB “sidelined” in sovereign crisis debate, says analyst
Eurogroup lays out plans to provide bail-out fund with greater flexibility to address sovereign risks; analyst says message sends signal European Central Bank is being “sidelined” in discussion
State Bank of Pakistan left in dark over governor’s resignation
Reports emerge that State Bank of Pakistan governor Shahid Kardar has resigned just over a year into job; central bank staff say they are unaware of any changes
Markets respond positively as Bernanke says US is ready to act
Federal Reserve chairman Ben Bernanke says US has a “number of ways” it could ease financial conditions if necessary; markets respond postitively
Lagarde sticks with tradition and appoints American first deputy
Christine Lagarde appoints a US citizen as first deputy managing director; creates new deputy managing director position for Chinese official
Germany and China heighten cooperation
People’s Bank of China and Deutsche Bundesbank meet in Frankfurt to discuss financial stability and trade partnership; China stresses confidence in euro area