Central Banks
Credit channel working in Korea
Bank of Korea paper uses data from Korean firms to build on academic research on credit channels
Israel held on low inflation figure
Minutes show Bank of Israel’s Stanley Fischer opted to leave the interest rate for March unchanged at 1.25% as CPI inflation remained low for a successive month
Noyer to chair BIS board
Banque de France governor succeeds Guillermo Ortiz as chairman of Bank for International Settlements’ board
Brussels and Paris push for European monetary fund
Finance ministries of France and Germany begin devising proposals for Europe’s own Fund, body would be geared at removing bailout security net as well as providing help to euro countries
Gudmundsson confident of Icesave deal despite country’s ‘no’ vote
Icelandic central bank governor Már Gudmundsson says a resolution will be reached with British and Dutch governments soon despite massive wave of public opposition to the plan
Volcker lambasts higher inflation targets
Former Fed chairman Paul Volcker calls the suggestion that inflation targets should be raised to about 4% “nonsense”; points to the difficulties of the 1980s
Canada to switch to polymer
Bank of Canada to issue plastic notes in 2011
Hildebrand, Weber condemn calls for higher inflation targets
Swiss and German central bank heads label IMF chief economist’s argument “seriously flawed”; deem timing “highly unfortunate”
Bangladesh’s Rahman welcomes remittance improvements
Bangladesh Bank governor Atiur Rahman says banks, microfinance companies and IT specialists should continue working together to increase access to finance
Bank begins consultation on note circulation
Bank of England in talks with commercial cash industry on proposal to better distribute lowest denomination note
ECB surplus drops more than 16%
European Central Bank reports a €2.218 billion surplus, and a €2.25 billion profit, pinning fall in interest income to low rates on dollar assets
Norway’s wealth fund smashes profit record
Norway’s Government Pension Fund–Global sees a 25.6% return on its investments for 2009, trumping the benchmark portfolio by more than four percentage points
Longworth praises Canada’s astute liquidity management
Bank of Canada deputy governor David Longworth says central bank has been thoughtful and measured, assuring markets that support is available but ensuring that it is only used in dire circumstances
Banks’ profits plunged 40%: Greece deputy
Bank of Greece deputy governor Eleni Dendrinou-Louri says profits fell more than 40%, accompanied by a disconcerting rise in trading income
Swiss stabfund losses wipe out UBS equity
Revaluation wipes more than $5.6 billion off the value of SNB’s toxic-asset portfolio
Argentine Senate set to reject governor
Central bank set to be leaderless again after committee vote against Fernández ally
Norges Bank sees $1.28 billion loss
Norwegian central bank says deficit the result of the appreciation of its currency; cannot transfer funds to the country’s Treasury as a result
Malaysia hikes as recession ends in emerging Asia
Bank Negara Malaysia raises its key rate by a quarter percentage point, citing stronger than forecast growth results in emerging Asia
Stimulus is not the bulk of debt: Fund’s Lipsky
International Money Fund first deputy John Lipsky says underlying increases in spending and lower taxes from financial sector underpin the debt burden, rather than stimulus
Ghana’s Amissah-Arthur explains early 2009 hike
Bank of Ghana governor Kwesi Bekoe Amissah-Arthur says the West African country’s government has made vital progress in cutting spending, allowing key rates to be lowered