Central Banks
Wunsch sceptical on forward guidance
Belgian governor says tool may be effective in a stable environment of below-target inflation
IMF warns Chinese economic recovery ‘lacks balance’
Focus on investment has set back progress towards “high-quality” growth, fund says
IMF staff agree outline of deal with Argentina
Argentina accepts need for policy framework leading to positive interest rates, IMF says
Eastern Caribbean digital currency remains offline
DCash has been shut down since January 14, as firm says it has “identified problem”
Kazakhstan’s president announces changes to powerful wealth fund
National unrest leads to changes at SWF that owns an estimated 40% of GDP
Wunsch calls for gradual ECB policy tightening
Belgian governor stresses risks posed by prolonged negative rates and QE
BIS paper challenges standard theories of term structure
“Expectation errors”, not term premia, create biased predictions of short-term rate – researchers
Sarb raises rates 25 basis points as inflation rises
MPC votes by four to one for hike, as inflation nears top of target range
ECB launches climate risk stress tests
Exercise will feed into SREP and could indirectly affect lenders’ capital ratios, ECB says
Costa Rica orders second consecutive rate hike
Inflation remains within target band but risks “lean to the upside”, board says
Chilean central bank hikes rate more than expected
Central Bank of Chile says inflation and economic activity is rising faster than its forecasts
Pierre Wunsch on inflation, forward guidance and policy tightening
The National Bank of Belgium governor speaks about over-reliance on central bank models and forward guidance, the impact of energy costs and inflation expectations, and the need to unwind unconventional monetary policies
Fed signals time will be right for rate hike ‘soon’
QE set to end in March, with balance sheet to start shrinking after rates rise
Canada removes forward guidance and maintains policy rate
Economic slack was absorbed rapidly in late 2021 and early 2022, bank says
IMF pares back forecasts as world faces ‘multiple challenges’
Omicron variant, supply disruptions and inflation threaten to hold back recovery, says Gita Gopinath
Holocaust survivor reparations boosted families’ education and wages
Bank of Israel paper studies the long-term consequences of compensation received by victims
Sri Lanka raises rates as food prices rise sharply
Governor says country does not need IMF aid despite minister warning of potential energy blackout
RBA develops new method of modelling financial sector
Approach takes Martin model “beyond the existing macroeconometric frontier”, say researchers
IMF warns El Salvador on crypto
Executive board recommends “removing bitcoin’s legal tender status”
‘Flood’ of reserves may not boost liquidity, say Acharya and Rajan
Central bank balance sheet expansion could harm liquidity in some cases, former RBI officials find
Russian central bank halts FX purchases as currency slides
Ruble hits 14-month low as fears grow that Putin will invade Ukraine
Fed keeps investors guessing on speed and endpoint of tightening
Investors generally agree the Fed will tighten policy, but how much and when are unclear
MAS aims for stronger Singapore dollar to resist inflation
Faster appreciation needed due to “rapidly accumulating” inflationary pressures, authority says
Two-thirds of central banks have a centralised risk unit
Central banks with a centralised risk unit tend to use KRIs