Central Banks
Fed policy may disproportionally affect largest banks – study
More leveraged US lenders experience sharper stock declines following rate hikes, Fed paper finds
BoJ eyes further rate hikes, possibly by year’s end
Central bank says global economies’ resilience to tariffs “remarkable”, while predicting slowdown
AI most widely used for document preparation in financial stability
Smaller financial stability teams less likely to utilise technology
Book notes: How low interest rates change the world, by Jesper Rangvid
This book investigates the possible causes of ultra-low interest rates, the problems low rates cause and the path of future rates
US deposit insurance requires rethink, say experts
Dallas Fed study asks if current level is sufficient, while NYU professor argues for 100% coverage
BoE cuts rates by 25bp in historic close call
For first time in history, MPC voted twice as initial round ended in 4–4–1 stalemate
Only 5% of central banks reveal individual bank stress-test results
Respondents share details of how stress scenarios are developed
BoK governor expresses confidence in finance minister
Rhee’s comments follow apparent discord between bank and government over digital assets policy
RBNZ survey respondents expect bank to cut policy rate
Business leaders and forecasters also expect weaker inflation in New Zealand over medium term
Working group minutes: seeking better interactions on social media
Building engagement is a challenge and brings risks for central bankers
Trump’s tariffs and the emerging market economies
Steve Kamin says EMEs are likely to escape the worst outcomes from capricious and chaotic trade policy
Chile launches programme to shore up FX holdings
Central bank aims to increase reserves by 40% and reduce role of foreign currency credit lines
People: Bowman to chair FSB supervisory committee
Plus: New governor in DRC and Rwandan deputy governor steps aside to become PM
ECB study points out unevenness in EU capital rules
Current prudential framework generates “unwarranted heterogeneity” in banking union, authors argue
Central banks with resource deficiency tend to pay higher salaries
Average financial stability budget also higher in units with that report non-staff resource shortage
India holds policy, thus ending easing cycle
Central bank leaves rate at 5.5%, citing lower inflation and continued risks from US tariffs
Kugler’s resignation from Fed opens door for Trump, say experts
Governor’s departure could enable president to appoint “shadow chair” to further undermine Powell
Trump should not have fired head of stats bureau, say experts
Economists say dismissal undermines trust in official data, along with president’s arguments and democracy itself
Vietnam asks lenders to reduce interest rates
Central bank says lower rates are needed to support country’s growth target
China analysts expect moderate rate cuts in H2
PBoC mirrors politburo stance in mid-year meeting while eyeing further internationalisation of yuan
Financial stability staff sufficiency improves year on year
Most central banks report contentment with non-staff resources
News coverage affects inflation expectations – NBER paper
Authors say bad news has bigger impact on perceptions of inflation