News
Carney: Inflation ‘likely’ to drop below 1%
Bank of England signals rates firmly on hold into 2015 as probability rises of inflation falling below 1% in the short run; real wage growth likely to accelerate over the year
Poll: Central bankers favour clampdown on bitcoin
Latest Central Banking poll shows most central bankers favour regulating or banning virtual currencies, despite most institutions so far just issuing warnings or advice
FSB says ‘substantial’ work needed on resolution regimes
Financial Stability Board monitoring exercise finds that only four jurisdictions have resolution regimes in line with its Key Attributes; India among those lagging behind on legislative amendments
Chief currency dealer dismissed from Bank of England
Grabiner report unveils transcripts of conversations between BoE's Martin Mallett and market participants discussing 'matching off' trades; BoE says dismissal unrelated to FX investigation
EU court throws out Syrian governor’s sanctions challenge
Adib Mayaleh will remain under EU sanctions after court rejects his challenge to restrictions imposed in 2012; Central Bank of Iran court case ongoing
Riksbank board at a loss over falling inflation, minutes suggest
Ingves says Swedish economy needs ‘two different policy rates: one for households and one for companies', while central bank casts doubt on new mortgage repayment rules
PBoC sheds light on opaque liquidity measures
Central bank confirms injection of billions of renminbi via new ‘medium-term lending facility’ as part of efforts to offset weaker foreign exchange inflows
Zimbabwe governor flags ‘increased vulnerabilities’ in financial sector
John Mangudya is wary of growing fragilities in the financial sector as liquidity shortfalls persist; pins hopes on nebulous government plan to improve economic fortunes
FSB overhauls website with help from Bank of Canada
New FSB website makes it easier for user to find and filter content; Mark Carney hails the revamp as a ‘collaborative effort’ from its members, in particular the Bank of Canada
FSB unveils loss-absorbency standards
Minimum standard for total loss-absorbing capacity aims to end ‘too-big-to-fail’ and should reduce the funding advantage of globally systemic banks, FSB says, in consultation document
China and Canada sign deal to set up first RMB clearing bank in North America
Countries also agree on $8.2 billion RQFII quota as part of major bilateral trade initiative; PBoC also signs MoU with Bank Negara Malaysia to set up RMB clearing bank in Kuala Lumpur
Shanghai-Hong Kong Stock Connect to go live next week
Securities regulators unveil final launch date after delays upset markets last month; scheme will allow direct trading of Chinese and Hong Kong stocks within certain limits
Ruble rebounds as Bank of Russia lets currency float
Central bank abandons exchange rate regime after ruble weakens 45% against dollar in five months, says decision will lead to ‘faster adjustment of economy to external changes'
People: Mark Carney reappointed as FSB chair; Bank of Portugal names new head of supervision
Governor of Bank of England gets second term as chair of the Financial Stability Board; Bank of Portugal appoints three new people in banking prudential supervision department; and more
Lagarde approves of BoJ’s ‘brave’ decision to launch more QE
IMF managing director describes ramping up of asset purchases as ‘perfectly legitimate’ and ‘brave’ on high-level panel in Paris; Yellen, Coeuré, Rajan and Carstens also feature
ESRB report studies allocation of macro-prudential powers
Report from advisory scientific committee says coordinating monetary and macro-prudential policies is easier if the powers sit within a single institution, often the central bank
Hélène Rey warns advanced economies are not safe from US spillovers
Leading economist says spillovers from US monetary policy affect both advanced economies and emerging markets, weakening domestic policy; NY Fed's Bill Dudley responds
BlackRock chairman warns Carney over low rate environment
Laurence Fink tells senior central bankers at Banque de France symposium that private institutions could ‘refuse to lend’ if rates remain low; Carney questions claim
Kyrgyz Republic marshals journalists in financial literacy push
National Bank spokeswoman says central bank is taking the lead with broad communication strategy while government finalises plans; journalists seen as ‘effective information transfer tool’
ECB publishes letters between Trichet and Irish government
Letters relate to the period leading up to Ireland’s decision to enter an EU/IMF programme; ECB threatened to withhold access to ELA unless Ireland sought a bailout
UK launches probe into banking sector competition
Investigation will assess whether retail banking market is too concentrated, with barriers to entry and opacity under scrutiny
Draghi dismisses reports of ECB rift
ECB president says it is ‘fairly normal to disagree about things’ and points to divisions on FOMC; earlier reports had raised questions over Draghi’s leadership style
ECB staff told to prepare for further measures
ECB keeps monetary policy stance unchanged; governing council tells staff to ensure the ‘timely preparation' of unspecified 'further measures’ to be implemented ‘if needed’
MAS chief sees SWFs struggling with secular stagnation
Ravi Menon urges sovereign wealth funds to move beyond traditional asset classes to tackle diminishing returns