Central Banks
Unconventional monetary policy has heightened medium-term risks to banks, IMF paper finds
No evidence that unconventional monetary policies has ‘helped' banks, according to paper; finds deterioration of medium-term bank credit risk in US, UK, and the eurozone
Avinash Persaud calls on regulators to address ‘system-wide' risk mismatches; slams Solvency II
Forcing long-term institutions under Solvency II to behave like short-term ones will be the biggest contributor to systemic risk since Basel II, says Avinash Persaud in Central Banking journal
Chile cuts interest rates to lowest level since February 2011
Central bank may resort to additional cuts in the months ahead as growth disappoints; Number of Latam economies have performed below expectations so far this year
Renminbi fails two out of five key tests to be reserve currency, says Malaysian deputy
Trading prowess, official support and confidence in China are heavily in renminbi’s favour, but there are issues over the country’s financial market development and role as an exporter of capital
End of Bretton Woods has helped dollar reserves, says ECB paper
The collapse of the Bretton Woods System has resulted in significant upheaval of currency reserve trends, says an ECB working paper co-authored by Barry Eichengreen
Central banks need significant discretion to make swap lines work, says ECB
The pricing, size and maturity of standing currency swap lines when activated need to be left to central bank discretion, ECB says in latest Monthly Bulletin; language is 'intentionally unspecific’
Bank of Mexico trims growth forecast for 2014
‘Sharp slowdown' early in the year suggests little inflation over ‘horizon in which monetary policy has effect'; structural reforms hailed as ‘indispensable step in right direction'
Firm-level characteristics affect monetary policy transmission, Czechs find
Working paper finds firm-specific characteristics like size, age, collateral and profit, affect the way in which monetary policy changes are reflected in the external financing decisions of firms
Bulgaria tells Brussels it can't guarantee failed bank deposits
Enforcing bank contributions to a deposit guarantee fund would destabilise the country's banking sector, Bulgarian governor and finance minister tell European Commission
Bank of Korea cuts interest rate to lowest level since 2010
Decision prompted by ‘much worse' business sentiment than expected, governor says; analysts expect limited boost to GDP as economic slowdown is ‘structural in nature'
Lesotho holds policy as inflation grows in line with neighbour South Africa
Minimum target for international reserves kept at $610 million, which Lesotho's MPC says is consistent with price stability and currency parity with the rand
MAS seeks oversight of credit bureaus
Monetary Authority of Singapore wants to supervise credit reference agencies to ensure sensitive data is held in a robust manner and let consumers access their information for free
New York Fed president suggests Dodd-Frank has made investors ‘more skittish'
William Dudley notes ‘extraordinary interventions' will be more difficult to undertake, potentially destabilising the financial system by unnerving investors
Stagnant wages amid falling unemployment creates headache for BoE
Bank of England halves wage growth forecast for 2014 as unemployment seen falling below 6%; Mark Carney notes ‘wide range of views' on MPC about degree of slack
Paper examines optimal monetary policy for wages and hours worked
Firms tend to pay too little for too many hours, economists argue in ECB-published paper; monetary policy should not target inflation too strictly, they say
Timor-Leste SWF hits 40% equities allocation
Timor-Leste petroleum fund quarterly report shows returns still exactly in line with benchmark; equity allocation hits 40%
Rajan urges ‘direct cash transfers' to poor people
RBI governor says transfer system would give the poor ‘choice and respect' and break the links between poor public service, patronage and corruption
Lithuania takes delivery of first euro coins
1,740 tonnes of coins must be minted ahead of currency switchover on January 1; delivery is supervised by police under special agreement signed in May
National Bank of Ukraine warns of FX trade restrictions
Ukraine's central bank has been forced to intervene to smooth currency volatility, and warns ‘administrative measures' may follow; rules on reserves have been relaxed, however
Malta denies granting refuge to Libyan governor
Central Bank of Libya confirmed Saddek Elkaber has sought sanctuary in Malta ‘for months', Libyan news site reports; minister claims governor ‘runs the bank' from island
Stanley Fischer upbeat on US productivity potential
Fed vice-chair says productivity cycles are ‘extremely difficult to predict'; emphasises possibility that productivity will continue to rise in line with historical average
Norway governor sees greater role for central bank in new 'Nibor' framework
Øystein Olsen sees greater powers for Norges Bank over the interbank rate framework, which has 'obvious weaknesses' and should be overhauled 'as soon as possible'
Angola SWF joins London-based international forum
Angolan sovereign wealth fund joins London-based International Forum of Sovereign Wealth Funds; Kazakh fund granted associate membership
ECB publishes ‘manual' explaining eurozone banks' comprehensive assessment
Publication of the manual ‘demonstrates ECB's commitment to transparency' on how it is conducting the ‘rigorous' assessment of the eurozone's biggest banks