Central Banks
Canada surprises markets with quarter-point cut
The Bank of Canada's rate-setting board voted unexpectedly on Tuesday to cut its benchmark overnight rate by 25 basis points to 4.25%.
We were transparent enough, say bankers
Investors were given all the information they required on structured products, a group of senior figures at top investment and commercial banks told UK lawmakers on Tuesday.
De Gregorio set to become Chilean governor
Jose de Gregorio, the deputy governor of the Central Bank of Chile will take over from Vittorio Corbio as governor of the central bank later this week, Michelle Bachelet, Chile's president, announced on Monday.
New Zealand to webcast monetary policy statements
The Reserve Bank of New Zealand is set to webcast the news conference that will follow this Thursday's rate decision.
CEPR proposes solution for fiscal dilemma
Game theory and inflation targeting could provide the best solution to the problem of fiscal policy impacting monetary policy, a paper published by the Centre for Economic Policy Research (CEPR) finds.
Banks cannot shun subprime borrowers: Rosengren
Eric Rosengren, the president of the Boston Federal Reserve, stressed on Monday the importance of continued availability of loans to subprime borrowers.
Norges Bank - Financial Stability Report 2/2007
The Norwegian economy is expected to remain stable even though the turmoil in the money and credit markets will continue to hamper banks, the Bank of Norway's latest financial stability report says.
Central banks failing to calm interbank markets
Interbank borrowing costs in the sterling, euro and dollar money markets shot up on Monday in spite of attempts by central bankers last week to alleviate end-of-year jitters.
Injections pose no moral hazard risk: ECB member
In spite of the Bank of England's claims to the contrary, moral hazard should not be an issue in deciding whether or not to inject extra funds into the money markets, a member of the European Central Bank's (ECB) executive board said on Monday.
Kazakhstan raises rates by 200 basis points
The National Bank of Kazakhstan's rate-setting board voted on Friday to hike its benchmark official refinancing rate by two percentage points to 11%.
Boston Fed blames subprime on house price decline
In conducting what it calls "the first rigorous assessment of the homeownership experiences of subprime borrowers", the Boston Federal Reserve has found that the decline in house prices that began in the summer of 2005 is the factor most responsible for…
No clear answer on when Japan will raise rates
Toshihiko Fukui, the governor of the Bank of Japan, emphasised on Monday that uncertainty still clouds the central bank's rate outlook.
Subprime standardisation can help: Fed's Kroszner
Randall Kroszner, a Federal Reserve governor, said last Friday that he is hopeful efforts to standardise loan-modification options and processes for subprime loans will help lenders, investors, homeowners, and communities faced with potential mortgage…
Bernanke keeps door open for rate cut
The Fed chairman's concern over the effects of renewed turmoil in financial markets lent weight to expectations of a rate cut in December.
ECB makes new bid to calm end-of-year fears
The European Central Bank (ECB) responded to panic in the interbank markets on Friday by pledging to lend over longer periods.
SARB policies here to stay regardless of Zuma
Tito Mboweni, the governor of the South African Reserve Bank, moved to assure markets on Thursday night that inflation targeting would remain whether or not the South African presidency changed hands.
Norway's oil fund avoids FX after recent losses
The Bank of Norway said it would not buy foreign exchange for its sovereign wealth fund, the Government Pension Fund, in December. The announcement follows news that Nkr104.4 billion ($18.9 billion) was knocked off the value of the fund, a store of the…
Mishkin wants changes to lead to medium-term focus
Frederic Mishkin, a governor at the Federal Reserve, said on Thursday that he hopes the decision to increase the frequency and expand the content of the central bank's economic projections will stop Fed watchers' obsessive focus on where rates are…
HK's Yam on ominous central bank injections
Joseph Yam, the chief executive of the Hong Kong Monetary Authority, said on Tuesday that the continued need for central banks to inject extra funds was "not a good sign."
Jury still out on global saving glut theory
New research published by the Reserve Bank of Australia finds limited support for the argument that financial crises have contributed to the current-account surpluses in developing economies.
Old Lady changes tack and steps in with £10bn
The Bank of England said on Thursday that it would lend an extra £10 billion ($20.7 billion) at its benchmark bank rate to allay fears that interbank borrowing costs will shoot up over December.
UAE governor denies revaluation rumour
Sultan Bin Nasser Al-Suwaidi, the governor of the Central Bank of the United Arab Emirates, on Thursday moved to deny reports that the central bank would allow the value of the dirham to rise by up to 5% on Sunday.
Czechs hike rates to 3.5%
The Czech National Bank's rate-setting board voted on Thursday to hike rates by 25 basis points to 3.5% after inflation rose to a six-year high in October.
Subprime crash has tarred all structured products
The subprime crisis has led to all securitised products being sold at a discount, regardless of whether they hold bad debt, says Guy Debelle, the assistant governor responsible for financial markets at the Reserve Bank of Australia.