News
Colombia concerned by loosening inflation expectations
Unexpected increase in inflation spurs Colombian central bank into action, as it raises key rate by 25 basis points; observers divided over importance of growth risks
Chicago Fed president wants more evidence of inflation
Evans backs an ‘extra-patient approach’ to monetary policy as he airs concerns over inflation outlook and ‘asymmetric’ risks; assesses economy more cautiously than FOMC colleagues
Trichet says banks must keep ‘hammering’ at their culture
Progress towards improving culture and behaviour at banks is uneven, and the G30 is calling on the laggards to catch up; Central Banking asked members what still needs to be done
Reserve Bank of India ‘front-loads’ easing with 50bp cut
Rajan points to deterioration in global outlook and desire to boost investment; RBI will now focus on improving the transmission of cumulative 125bp reduction in key rate
FSB agrees final TLAC principles but asset management work has way to run
Meeting in London sees the organisation agree final draft principles for total loss-absorbing capacity, as new branches of research into asset management risks sprout
‘Little support’ from data for theories of disconnect between trade and exchange rates, IMF report says
Data largely supports conventional economic wisdom linking movements in trade flows with levels of exchange rates, according to WEO chapter; Japan may be an exception
Colombia doubles value of largest banknote
Colombian central bank will issue new 100,000 note for the first time alongside five redesigned denominations in 2016
Irish central bank may spread higher levy on finance industry over time
The Central Bank of Ireland may spread the proposed increase in its annual levy on the financial industry over several years, but it still backs the call for non-banks to meet 100% of costs
RBNZ reveals adjustments to ‘tight budgetary framework’
Central bank cuts 15 positions in preparation for new funding agreement; talk of an ‘offshore office’ put on ice last year as operating expenses ran over budget
IMF staff calls for ‘comprehensive strategy’ on non-performing loans
IMF staff call for creation of asset management companies to free up European banks from distressed debt; cites Spain as good example
Macro-prudential institutions were designed too hastily, Tucker warns
Group of economists including former BoE deputy warn macro-prudential policies are too poorly understood and were too hastily assembled to be effective, outlining possible enhancements
Irish deputy Stefan Gerlach steps down early
Academic economists praise Gerlach, who was seen as ‘outside appointment’ who improved bank’s research and data provision; deputy had decided not to apply for governorship
Charlie Bean expects natural rate to change course
Former BoE deputy believes evidence points to a gradual rise in the natural rate of interest; suggests government is better placed than central bank to solve zero lower bound problem
Taiwan cut seen as start of easing cycle
Prompted by negative inflation and stalling growth amid China slowdown, the central bank cuts rates for first time since 2011
UK banks won't face FRTB capital hike – BoE official
Policy expert says most trading risks already captured under Pillar 2 framework
Norway signals further easing as it cuts again
Norwegian central bank looks to cut rates further with inflation set to fall back to 2% over the forecast horizon
Micro-data matters for unemployment, says BoE’s Broadbent
Deputy governor becomes latest economist to stress importance of micro data for macro policy, warning overreliance on ‘simple aggregates’ may lead central bankers astray
People: FCA names COO; RBA shuffles assistant governors
Financial Conduct Authority announces Georgina Philippou as COO; Michele Bullock named assistant governor for business services in Australia; and more
Fed board approves changes to same-day ACH service
Institutions that receive payments through the ACH network will have to participate in same-day service, but will be compensated by a new interbank fee levied on originators
Draghi: too early to judge impact of global events on eurozone inflation
Mario Draghi says slowing growth in EMs, strong euro and weak commodity prices have ‘renewed downside risks’ to outlook; Peter Praet says eurozone still ‘going through correction phase’
Belgian and French central banks get larger role buying asset-backed securities
The ECB makes the National Bank of Belgium the second central bank authorised to buy bonds under its asset-backed securities purchase programme; Banque de France role expanded
Organisations outline next step in plans to strengthen CCPs
Basel-based groups and Iosco publish workplan for coordinated international policies on CCPs, and offer update on story so far; 2016 will see the bulk of analysis published
Moldovan officials attack use of central bank as 'scapegoat'
Governor and first deputy of Moldova's central bank attack 'attempts at a government level' to delay banking investigation; will remain in place for three months 'unless replaced'
China opens onshore bond market to foreign banks
Hong Kong units of HSBC and Bank of China are first overseas lenders to receive approval, following move PBoC says will increase cross-border use of the yuan