Central Banks
Ukrainian central bank cuts rates and promises further banking reform
Personnel director becomes acting deputy governor in charge of banking supervision; Lagarde praises conduct of monetary policy but says reform must continue
BoE signals further rate cut despite stronger-than-expected data
Package of measures announced in August led to “greater than anticipated boost” to UK asset prices; despite data somewhat stronger than expected a further rate cut is likely, minutes say
Mexico inflation could be affected by exchange rate and US events
Mexico’s board to closely monitor exchange rate pass-through on consumer prices, quarterly review says; outcome of US election and the normalisation of the Fed's interest rate also a concern
National Bank of Denmark warns of growing bubble in Copenhagen
Report says housing market in country as a whole looks relatively stable, but Copenhagen’s market is close to the danger zone, following first “statistical bubble test”
ECB’s QE policies have significant spillovers into CESEE economies, paper argues
Researchers examine effects on investment of quantitative easing by the European Central Bank
Bank of Slovenia introduces macro-prudential measures for housing market
Slovenia’s central bank has recommended lenders impose loan-to-value and debt service-to-income ratios on all new housing borrowers
Wage Phillips curves in eurozone steepened after 2008 – paper
Germany was the exception among major eurozone economies, Bank of Italy paper argues
Largest banks meet Basel III capital standards – BIS and EBA
Banks have improved capital and liquidity ratios, reports note, but methodology may differ from that used by industry
Paper presents new model of interbank loan market
“Novel” model should help policy-makers think through real-life scenarios, researchers say
BIS’s Borio: leaning against the wind must be systematic
Claudio Borio says using monetary policy to stabilise the financial cycle is only likely to be effective if done all the time, not just when trouble is brewing
Riksbank highlights complexity in choice of target
Report studies case for changing target to CPIF or HICP inflation, and reinstating target band, ahead of discussions over monetary framework reforms
People: Dennis Lockhart to stand down; Buch becomes Irving Fisher committee chair
Atlanta Fed president quits after 10 years at bank; Claudia Buch becomes chair of the BIS’s stats-focused committee; new head of research at the New York Fed
BoE shines light on its gender pay gap
Men are still paid more than women at the central bank, though the gap is narrowing, and smaller within pay bands than across the organisation
FOMC members disagree over need for rate hike
Lael Brainard argues labour market suffers from slack and monetary policy is weak when dealing with weak demand; Dennis Lockhart confident of recovery, despite “frustrating” inflation data
Eurozone exchange rate pass-through has declined over time – researcher
Italian exchange rate pass-through has behaved very differently from other major eurozone economies – particularly Germany’s – paper finds
BIS paper flags spillovers from bank dividends
Dividend payments create a channel through which one bank’s capital policy can affect the equity value and risk of default of others, giving capital the attributes of a public good
Basel Committee hits turbulence on approach to year-end deadline
Central banks and supervisors offer support to its year-end goal, but industry players and EU countries show growing concern over higher capital levels
Yellen ‘should be ashamed’ – Trump
Republican nominee for US presidency attacks Fed chair Yellen and says interest rates must be raised
Skingsley calls for balance, as government prepares to rethink Riksbank Act
Central bank mandates need to be a balance of specificity and flexibility, while too broad a mandate could threaten independence, deputy says; government to consider six areas of Riksbank’s work
RBA’s Kent considers life after the mining boom
Australian economy is well into an adjustment, following the country’s mining investment boom; RBA correctly identified the patterns of adjustment, but was surprised by the magnitude
New facility opens to print £10 notes, as £5 enters circulation
Substrate for UK’s new £5 banknote, launched today, was produced in Australia because new facility was not yet ready; Innovia says new plant will make use of the latest technology
Recessions nearly tripled amount of Italian NPLs, paper argues
Italian bad debt levels would be almost one third of their current levels without the sub-prime and sovereign debt crises, a counterfactual analysis argues
Chinese financial spillovers to Asia-Pacific on the rise – BIS paper
Working paper finds Chinese equity markets now have almost as much of an impact on Asia-Pacific as the US, though the effects differ in stressed and placid times
Boston Fed’s Rosengren highlights risk of overheating
US economy looks “resilient”, despite some mixed signals from the data, says regional Fed president; advocates process of gradual rate hikes as the risk of an overheating economy grows