News
Canada hikes by quarter point
Bank of Canada raises overnight rate to 0.5%
Hungary defies government calls for cuts
National Bank of Hungary keeps benchmark rate flat at all-time low; decision will further anger new government, which has called for steeper cuts and easy money
Markets support Poland’s central bank nominee amid opposition murmurs
Stock market gains as analysts welcome the nomination of former prime minister Marek Belka to head the central bank; confirmation expected despite grumblings from opposition politicians
Angolan central bank loses monetary policy mandate
Parliament votes to change law so central bank can “merely participate” in monetary and exchange rate policy; government will have responsibility while central bank assists in implementation
Surge in foreign holdings of US Treasuries and agencies ends two-week slide
Data show holdings of US Treasuries and agency securities by foreign central banks with accounts at the Federal Reserve increased $18.2 billion on the back of two weeks of declines
Venezuela to reopen bond markets
Central bank says tests of new centralised trading system nearly complete; follows closure to cut off parallel currency market
ECB’s Bini Smaghi: Greece cannot default
ECB’s Lorenzo Bini Smaghi says an orderly default is simply not an option to solving Greece’s fiscal burden
Ex-Polish PM to head central bank
Poland's acting president nominates former prime minister and IMF European director Marek Belka for post of central bank president
China denies reviewing eurozone bond holdings
State Administration of Foreign Exchange dismisses reports that it is appraising euro asset holdings; follows surge in T-bill purchases last week
BIS’s Cecchetti: change data collection to create “map” to stem crises
Bank for International Settlements’ chief economist Stephen Cecchetti suggests adapting existing statistical reporting frameworks in pursuit of “holy grail” of systemic risk monitoring
Risk Europe: Industry should stop fighting Basel III and focus on transition
Senior Basel Committee member tells banks to get involved in negotiations over the phase-in period for Basel II reforms
Missed mortgage payments spike in Ireland
Thirteen percent of mortgage payments overdue by more than 90 days; chief regulator Matthew Elderfield says there is no simple solution to the problem
Libor climbs as uncertainty in European markets grows
Libor rises to highest in more than ten months as lending in European markets slows down
IMF flags concern over Reserve Bank of Zimbabwe’s governance
IMF cites severe governance failings as Zimbabwe’s central bank maintains Gideon Gono as chair of its new governing board.
Banks starting to think local after crisis, BIS finds
Banks around the world are slowly shifting to rely on local retail funding, says the Bank for International Settlements
Shirakawa wants financial stability as primary mandate
Governor of the Bank of Japan believes central banks' key task should be to achieve a stable financial environment; says higher inflation targets would do little good at the zero bound
Brussels backs bank tax to fund new resolution network
European Commission calls for a network of resolution funds to bear cost of winding down firms; cost covered through levy on lenders
Microfinance pioneer laments crisis as missed opportunity
Grameen Bank founder Muhammad Yunus says governments passed up chance to change financial model in a way that would have better served the needs of society
UAE governor urges sovereign funds to repatriate
Governor of the Central Bank of the United Arab Emirates Nasser Al-Suwadi appeals to sovereign wealth funds in the region to reject pre-crisis strategy of investing in companies based in advanced economies and instead inject funds into the Gulf region
US, Chinese regulators sign cross-border resolution deal
Federal Deposit Insurance Corporation and China Banking Regulatory Commission to cooperate and write shared contingency plans for cross-border failures; move follows United Commercial Bank failure
ECB insists eurozone bonds decision was its own
Political pressure played no part in ECB decision to buy bonds, says board member
Philly, Cleveland Fed presidents net inflation-busting pay rises
Federal Reserve's Annual Report shows ten out of 12 regional Fed presidents earned above-inflation salary increases
Fed overpaid for crisis assets by $21 billion: government report
Congressional Budget Office report estimates the Federal Reserve subsidised banks and investors by $21 billion through its credit programmes
ECB buys another €10 billion in government debt
Analysts split on whether second round of purchases with German ban on naked short spooks European markets