News
Analysts applaud passage of ESRB, fret over practical concerns
Commentators praise the concept of a continent-wide systemic risk supervisor but say politics and lack of policy clarity could thwart good intentions
Ireland’s debt costs soar
Auction results show demand for Irish debt remains strong, but analysts fear higher financing costs are unsustainable
RBA appoints new head of economic research
Reserve Bank of Australia promotes deputy head of domestic markets Jonathan Kearns to head of economic research
Ex-Brazil deputy to head hedge fund’s Latin American office
Former Central Bank of Brazil deputy governor Mário Mesquita will head Latin American office of UK hedge fund Brevan Howard
Money market rate best policy target: BIS research
Bank for International Settlements research finds lower macroeconomic volatility where central banks use money market rather than repo rate as policy target
Rajan, Krugman renew spat
Ex-IMF chief economist Raghuram Rajan and Nobel laureate Paul Krugman revive clash over central banks' role in the crisis
Banks forgot their wider social duties: HSBC's Green
HSBC chairman and new UK trade minister Stephen Green says banks must reexamine their contract with shareholders and society; sustainability central part of shareholder value
EMEs deserve bigger role in reform debate: DIFC, CIC officials
Dubai International Financial Centre's Nasser Saidi and China Investment Corporation's Jin Liqun say emerging markets' prominence set to endure, mandating bigger voice in regulatory reform process
EU bailout vehicle nets top credit rating
European Financial Stability Facility secures triple A rating
Honohan suggests Irish deficit forecasts unrealistic
Ahead of bond auction, Central Bank of Ireland governor says higher refinancing costs and less-favourable-than-forecast conditions could stymie deficit reduction; “welcome relief” on Anglo
Posen: Bank’s next step should be ‘heavy duty’ credit easing
Bank of England’s Posen suggests different tack if UK’s recovery remains anaemic
UK Treasury tables insolvency plans for investment banks
Treasury says Lehman Brothers’ failure showed strong case for introducing special administration regime for investment banks
Beijing makes two changes to MPC
People’s Bank of China deputy governor Du Jinfu and Industrial and Commercial Bank of China president Jiang Jianqing will join advisory Monetary Policy Committee
Beijing looks to further internationalise renminbi
People’s Bank of China says it must work to match growing demand for renminbi outside of mainland; sets out further steps including opening domestic market to international institutions
Shirakawa rights wrongs of ‘lost decade’
Bank of Japan governor challenges barbs over economy’s, and central bank’s, performance over recent decades; calls for “deeper understanding” of liquidity and counterparty risk
HKMA warns on renminbi product risks
Hong Kong Monetary Authority executive director calls for caution in due diligence and supervisory assessment of renminbi products
Elizabeth Warren poised to run consumer body: reports
US media say Harvard academic Elizabeth Warren to be named assistant to President in new consumer body; designation will allow her to circumvent politically charged confirmation process
RBI narrows rate corridor with repo, reverse repo hikes
Reserve Bank of India lifts repo and reverse repo rates in first-ever mid-period policy review; narrows rate corridor as flagged to cut market volatility
German paper claims Sarrazin deal pushed onto Buba
Broadsheet says German President Christian Wulff forced Bundesbank to negotiate deal that led to Thilo Sarrazin’s departure; report stirs up concern on Buba’s independence
Central banks must work with stakeholders to improve repo clearing and settlement: BIS body
Committee on Payment and Settlement Systems identifies seven key problems in repo markets; says central banks, regulators and stakeholders must join forces to hammer out solutions
Shirakawa applauds Tokyo’s yen sale, analysts less convinced
Bank of Japan governor Masaaki Shirakawa says government’s step to contain soaring yen will lend stability to the currency; markets soar and yen drops, but commentators divided on effect
Netherlands Bank paper: Basel III could disrupt monetary transmission
Dutch central bank research warns new Basel III rules could lead to greater demand for long-term assets, leading to steeper yield curve which could disrupt monetary policy channel
Strauss-Kahn calls for European fiscal federation
IMF managing director Dominique Strauss-Kahn proposes creation of European fiscal authority similar to ECB to oversee fiscal policy
Monetary policy best placed to boost short-term growth: King
Bank of England governor Mervyn King tells trade unionists that monetary policy is best suited to revive flagging broad money figures; says fiscal emphasis should be on debt reduction