Central Banks
Fischer defends Bank of Israel over house prices
Bank of Israel governor tells parliamentary committee the central bank's interest rate cannot serve the interests of the housing market alone
ECB cuts rates and sets up ‘task force' seeking to promote SME lending
European Central Bank cuts benchmark rate from 0.75% to 0.5% by a majority decision; Mario Draghi says has set up a ‘joint task force' with the EIB to examine ways of promoting business lending
BoJ paper creates new framework for identifying monetary policy shocks
Working paper uses TVP-VAR model to identify the impact of conventional and unconventional monetary policy shocks on the real economy at the zero lower bound
Italians back using gold reserves to lower funding costs
A survey commissioned by the World Gold Council finds that Italians would support the creation of gold-backed bonds; sovereign bond yields fall further as new government is formed
BoJ minutes show thinking behind ‘extremely aggressive' easing
Bank of Japan monetary policy committee members were determined to grasp opportunity and make a clear statement to the markets, at meeting that heralded a new era in monetary easing
Bundesbank's Nagel calls for better data on European money markets
Joachim Nagel and Carsten Hartkopf from the Bundesbank's markets department advocate money market survey to better understand monetary policy transmission and give early warning signals
Pacific island countries cannot rely on external demand
IMF office in Pacific warns island countries the impetus from growth ‘will need to come from within’; urges central banks to keep inflation in check and promote external competitiveness
Carney says inflation targeting is worth salvaging
Bank of Canada chief says central banks’ limitations were revealed by the financial crisis, but inflation targeting is still worthwhile when supplemented by forward guidance and flexibility
Bank of Thailand prepares to counter rising baht
Monetary Policy Committee agrees ‘framework for exchange rate management’, but does not yield to government demands for a rate cut
Fed opens door to further asset purchases
The Federal Reserve resists recent talk of an exit from quantitative easing by emphasising that it could yet increase asset purchases; accuses fiscal policy of ‘restraining economic growth’
Osborne emphasises ‘support for growth' remit for BoE financial policy committee
Letter from chancellor to governor calls on FPC to give 'due weight' to its role in supporting economic recovery; call for consistent communications leads to speculation over divergent views on MPC
Jwala Rambarran says housing policy needs ‘fundamentally rethinking’
Trinidad and Tobago governor concerned by ‘acute national housing shortage’ that is growing as house prices soar; launches latest publication in educational series
FDIC’s Hoenig blasts Basel III risk weights as insufficient
Thomas Hoenig argues that Basel III can be ‘gamed' and that the capital ratios may over-represent the actual state of banks’ balance sheets
RBA's Edey lauds Australia's financial regulation framework
Australian bodies for financial regulation 'served Australia well' during the crisis, though implementation is more important than structure, says assistant governor
Bank of Botswana delivers first rate cut since 2010
Botswana’s central bank cuts interest rate by 50bp to 9% to stimulate growth and employment despite continuing rise in inflation
Croatian paper develops financial conditions index
Study seeks to assess financial conditions in Croatia using data from domestic and foreign debt markets; relates findings to the real economy
Central Bank of Ireland annual report sees assets drop and profits rise
Recovery in Irish economy in 2012 led to lower reliance on US dollar liquidity and continued increase in central bank profits; governor urges continued commitment from external stakeholders
Carney launches ‘safer, cheaper, greener’ banknotes
New Canadian $5 and $10 polymer banknotes aim to cut counterfeiting, lower costs and reduce environmental impact; notes unveiled 350km above the earth by International Space Station commander
Weak eurozone data add weight to ECB rate cut talk
Expectations of a rate cut mount as unemployment and inflation figures disappoint, although many question whether lower interest rates would have a significant impact
BIS paper urges central banks to build their own financial buffers
Paper provides framework for central banks to assess the financial resources they should hold to protect themselves against losses; Jaime Caruana stresses importance of financial independence
Sri Lankan inflation drops one-third in two months
Central bank reveals inflation drop for second successive month; had earlier hinted at rate cut if slide continued
MAS fears supply-side hindrance to growth and inflation
Singapore’s macroeconomic review laments ‘tepid and volatile’ growth; central bank expects moderate economic recovery and steady inflation in 2013
BOFIT paper finds Turkish depositors prefer banks with political connections
Study analysing Turkish banks finds those with former members of parliament among their top executives are subject to 'less discipline' from depositors
BoE statistics indicate gradual lending improvement
Lending targeted by funding for lending scheme continues to creep towards positive figures; large gap between lending to individuals and to businesses