Central Banks
MAS makes surprise adjustment to currency policy
In an unscheduled policy statement the Monetary Authority of Singapore announces a reduction of the slope of the currency band after a review of inflation forecasts
Linde says ECB’s stimulus package is ‘ambitious’
Luis Linde, governor of the Bank of Spain, estimates the European Central Bank will buy €100 billion of Spanish government debt under its new asset purchase programme
Turkey’s central bank expects to break letter-writing cycle
The Central Bank of the Republic of Turkey forecasts inflation falling back to target from mid-2015, sparing it a fourth letter to the government in the space of five years
BIS paper argues debt overhang is ‘leading cause’ of sluggish growth
Paper by Stephanie Lo and Ken Rogoff finds debt overhang is the main factor behind countries struggling to recover from crisis, but high leverage may obscure other factors at play
Treasury Committee attacks FCA’s use of media as ‘tool of regulation’
UK conduct regulator defends use of press to disseminate its policies, but MPs call the process ‘bizarre’ and a ‘colossal risk’
Asean central banks to improve settlement transparency
Members of the Asean Central Banks’ Working Committee on Payment and Settlement Systems adopt principles to improve transparency for cross-border trade settlements
BoE appoints two executive directors
Alex Brazier and Sam Woods take responsibility for financial stability and insurance, respectively; Brazier fills role left vacant by departure of Spencer Dale
Chilean banks must plan for liquidity shortages
Chilean banks will adopt new liquidity management policies later this year while reporting their LCR and NSFR; Central Bank of Chile may impose further rules next year
Belgian research examines policy response to oil price shocks
To curb the wealth-shifting effect of oil price shocks ‘optimal policy calls for a large but short-lived increase in the real interest rate’
Fed challenges payments industry to get quicker and safer
New document sets out strategies for improving US payment system; Federal Reserve will only consider expanding role as service provider if private sector falls short
Research finds IMF lending helps limit future crises
Working paper published by IMF examines impact of lending programmes on developing countries between 1970 and 2010, finding they reduce likelihood of future banking crises
Syriza reaction: Exit fears overblown but bitter struggles to come
Economists respond to Greece’s new Syriza-led coalition government with mixed feelings, but see an exit from the euro as unlikely despite the coming north-south confrontation
People: Bulgarian deputy dismissed by parliament; HKMA appoints director
Bulgarian parliament dismisses central bank deputy governor over failure of a commercial bank; HKMA creates post of executive director for risk and compliance; and more
State Bank of Pakistan slashes rates to decade low
Governor Ashraf Mahmood Wathra strikes upbeat note despite inflation falling significantly below target, as central bank cuts interest rates by 100 basis points
Colombian paper examines synchronisation of economic cycles in Latin America
Central Bank of Colombia working paper finds there is ‘not a high’ level of synchronisation between a sample of seven Latin American countries
Croatian central bank calls for solution to Swiss franc mortgage quandary
Bank argues local households with liabilities denominated in the rising currency must receive help but suggests it is not the right to institution to tackle the issue
Leading central bankers unsure about impact of technology on monetary policy
Carney, Kuroda and Coeure debate the elusive Phillips curve in Davos; rejecting ‘technological pessimism', Carney says ‘just catching up is a huge opportunity of growth potential'
BoE's Forbes says few MPC members are 'perennial hawks or doves'
External member lays out key risks to Bank of England's central forecast, including stronger US growth, lower oil prices, and exchange rate pass-through
Mersch lays out path to capital markets union
ECB executive board member says harmonised regulation and ‘institutional adjustments’ needed in Europe; suggests change in securities markets
Riksbank profits safeguard independence, first deputy says
Kerstin af Jochnick says low interest rates will hurt profits in coming five years but adds central bank has buffers to guarantee its ability to perform vital tasks
Eichengreen says central banks should worry more about deflation than 'profits and losses'
The Berkeley professor on what last week's SNB move says about big central banks 'wrong-footing' markets and the Fed's problematic response to financial crisis
Ingves: Europe facing peer pressure on Basel III
The chair of the Basel Committee is counting on peer pressure to bring Europe into line with Basel III, but regulatory experts are not convinced it will work