News
New Turkish notes spark spike in printing costs
Central Bank of Turkey’s Annual Report shows improved lira notes caused banknote manufacture costs to leap by more than half; governor Durmuş Yılmaz praises inflation targeting framework
Greece passes first hurdle of bailout programme
European-IMF review of Greek economic programme says country is on track to receive second tranche of funds
CIC denies interest in UK football club: reports
Chinese sovereign wealth fund refutes suggestions that it is funding a bid to buy Liverpool Football Club
RBI drastically cuts deputy governor Chakrabarty’s role
Reserve Bank of India removes five of deputy governor Kamalesh Chakrabarty’s nine portfolios; move linked to Chakrabarty’s out-of-turn comments on monetary policy
Pakistan set to appoint new governor in coming weeks
State Bank of Pakistan says new governor must be in place by beginning of September, but no frontrunners yet
Singapore slaps biggest bank with extra capital requirements after technical glitch
Monetary Authority of Singapore censures DBS and imposes additional capital requirements after technical failure caused bank’s services to shut down in July; fault pinned on poor risk oversight
Bair’s senior adviser leaves FDIC
Senior adviser to markets Joseph Jiampietro departs FDIC after less than 18 months
NY Fed to start second set of reverse repo tests
New York Federal Reserve will conduct further tests of reverse repurchase operations tool in preparation for eventual exit from monetary support; tests will involve agency MBS, unlike previous trial
Bank Indonesia plans rupiah redenomination: reports
Bank Indonesia acting governor Darmin Nasution says redenomination of the currency should be inflation neutral
South Africa in fresh attempt to curb rand volatility
Ruling African National Congress will consider short-term capital inflows tax to curb rand volatility, currency’s strength; party questions merits of Sarb’s hard-won inflation targeting regime
PBoC announces plans to deregulate gold market
People’s Bank of China says it will provide more commercial banks with access to global gold markets to address growing demand
Bank’s macro model takes a bruising
Former Bank of England economist says model misjudges trade-off between growth and inflation
Northern Rock’s bad bank posts first profit
Northern Rock Asset Management shows $267m profit for first half of year as split with so-called “good bank” lowers costs of funding; FSA slaps RBS with $9m fine for screening failures
China now world’s second-largest economy, says PBoC’s Yi
People’s Bank of China vice governor Yi Gang says China has overtaken Japan
Ex-deputy Muto endorses Bank of Japan’s anti-inflation targeting stance
Former Bank of Japan deputy governor Toshiro Muto says introducing inflation targets, as government wishes, will not cure deflation; analysts agree
Bear bailout vehicle turns first paper profit
Federal Reserve balance sheet data shows Bear Stearns’ assets held in Maiden Lane vehicle made a paper profit for first time since its inception
Argentina dips into central bank profit to finance expenditure
Central Bank of Argentina transfers $760m from last year’s profits to government to find expenditure; government unwilling to tap bond markets until yields come down sufficiently
Malawi cuts for first time in three years
Reserve Bank of Malawi implements two percentage point cut to key rate as inflation moderates; food price inflation wanes as shortages begin to abate
First FSAP for US flags commercial real estate woes
The US banking system at risk from commercial real estate woes, the IMF’s first Financial Sector Assessment Programme says
Fed’s Bullard calls for further QE
St Louis Federal Reserve president James Bullard says United States must commit to further stimulus if it wants to avoid a deflationary trap like Japan
CIC’s profits soar by 81%
China Investment Corporation records gains of $41.6 billion
Argentina may raise deposit ratio in latest attempt to curb money growth: reports
Governor thought to be keen on ten percentage point rise in proportion of deposits lenders must place in central bank coffers
Fed finally set for full complement of governors
Senate Banking Committee okays Janet Yellen for Fed vice-chair; Peter Diamond and Sarah Raskin also approved for Fed board; first time six governors have served the Fed in more than four years
Kosovo’s incarcerated governor hit with fresh charges
Kosovo’s central bank governor Hashim Rexhep charged with allegedly abusing official position and receiving bribes