Central Banks
BoE’s Benjamin on market resilience, non-bank liquidity and the modern financial system
The UK central bank’s executive director for financial stability strategy and risk speaks about leverage in the gilt repo market, minimum haircuts and central clearing, and securing liquidity to where it’s needed
People: BSP appoints new deputy governor for supervision
Plus: Kenya lines up Nokia’s country chief for seat on board, and head of US crypto council steps down
Majority of central banks have analysed effects of tariffs
Spike in levies seen as having varying degrees of impact on financial stability
Politics influences US citizens’ inflation expectations – study
Party affiliations help explain divergence in different surveys’ results, say Cleveland Fed economists
Rates round-up: African central banks hold steady
Mauritius, Namibia, Uganda and Zambia leave policy unchanged, while Kenya cuts
Stablecoin growth may decrease loan supply in US – Fed study
Bank lending could be reduced by $325 billion over next three years, author claims
Norges Bank strikes hawkish tone with rates hold
Inflation “in line” with June projection and two cuts still on table for this year, central bank says
Weak productivity reduced output in Australia by up to 3% – study
RBA paper says decline has “profound implications” for citizens’ welfare
Only 30% of central banks conduct non-bank stress-testing
Exercise tends to be less common in institutions with smaller financial stability teams
Bessent expects BoJ to raise policy rate
US Treasury secretary also says inflation in Japan is dragging up yields on long-term US bonds
Climate risks still on the fringe of monetary policy in Asia
Notwithstanding efforts by the PBoC and BoJ, there is still a need to observe persistent and measurable impacts on inflation and output before climate change truly influences interest rate policy, argues Sayuri Shirai
Barbados to launch instant payment system
Central bank says ‘revolutionary moment’ in country’s financial history will take place next March
SNB opens poll on altitude-themed banknotes
Central bank asks public for views on designs based on Switzerland's ‘unique topography’
Warren’s buffer plea is point-scoring, says expert
Professor attacks senator’s call for Fed to tighten bank regs, but echoes concerns about weak lenders
BoT cuts policy rate and forecasts tariff-induced slowdown
Thai central bank cuts by 25bp at final meeting before dovish Vitai becomes governor
China to continue consumption push with loan interest subsidies
PBoC says plan aligns with government policy to increase consumer spending
Most central banks seek improved regulatory frameworks
Key areas include laws on systemically important banks, liquidity risks, insurance and fintechs
The cost of inaction on wholesale CBDCs
A gap exists between demand in capital markets and most central banks’ research priorities as evolving risks accrue
Investor sentiment now back at pre-tariff level – BIS study
However, authors warn that accommodative conditions could reverse at any time and trigger disruption
Investment funds procyclical to bond markets – ECB blog
Vehicles sell sovereign debt in times of stress while other investors step in to buy it
Limit on insured bank deposit payouts averages $50,000
One in 10 jurisdictions lack any deposit insurance fund
Australia cuts rates by 25bp as expected
RBA governor says inflation within target, as bank’s forecasts assume further cuts
Foreign open-end funds threaten financial stability – BoJ study
Researchers say external crises could lead to large outflows from vehicles investing in Japan
Bailey, the IMF and the fundamental asymmetry problem
The IMF must address sovereign asymmetry and transform surveillance into a tool for mutual accountability, argues Biagio Bossone