News
Taylor-rule author blasts Bernanke’s argument
Economist John Taylor says Bernanke was wrong to argue that low interest rates were not a factor in the housing bubble that led to the financial crisis
Senator who proposed Fed overhaul to retire
Senate Banking Committee chairman Chris Dodd, who produced a sweeping bill that seeks to limit Fed power, announces that he will not seek re-election
Euroclear appoints new CEO
Settlement services provider names HSBC’s Tim Howell as replacement from Pierre Francotte
Iceland’s president vetoes $5.5 billion repayment
Decision underlines uncertainty caused by cross-border banking collapse; sparks rating-agency downgrade
Inflation targeting insufficient: China’s Zhou
People’s Bank of China’s Zhou Xiaochuan says targeting low inflation alone is inadequate, particularly in light of the financial crisis
Massive debts will stunt growth: Reinhart and Rogoff
Carmen Reinhart and Kenneth Rogoff say on current debt trends, growth rates are set to fall substantially in four years’ time
Nigeria dismisses sacking allegations
Central Bank of Nigeria says claims it told banks to sack staff unfounded
Romania cuts by half point
National Bank of Romania reduces key rate in bid to meet inflation target
Bank of Estonia leads the way in slashing budget
Estonian central bank sets an example by cutting costs by 10%, with EEK 1 m drop in staff costs; also expects income from reserves to fall
China should turn to oil: senior central banker
People’s Bank of China director says country should invest in oil and other resources; dismisses suggestion that reserve accumulation will force yuan appreciation
World’s biggest bond fund cuts back on gilts and treasuries
Pimco says it will reduce its holdings of US and UK government debt on concerns over rising debt and the withdrawal of asset purchase programmes
Bernanke: low rates didn’t spur housing bubble
Federal Reserve’s Ben Bernanke says direct linkages between low federal funds rate and rise in house prices weak; fix regulation not monetary policy
Israeli rates rise as Fischer enforces third hike
Bank of Israel’s Stanley Fischer hikes prime rate to 1.25%
Old Lady urges banks to use profits to de-leverage
Bank of England calls on banks to plug profits back into fixing balance sheets; Haldane says City exodus may be price worth paying
Botswana slashes a point off rates
Bank of Botswana cuts key rate to 10% - a record low
Chief Republican votes against Bernanke
Leading Republican on Senate Banking Committee Richard Shelby says Fed abused trust and confidence
Jordan cuts by half a point
Central Bank of Jordan knocks 50 basis points off key rate as deflation strikes
Basel Committee unveils radical agenda
Liquidity and capital proposals alter definition of capital, introduce global leverage ratio
Economists judge Carstens worthy successor
Carstens up to the job of heading the Bank of Mexico but concern exists over his replacement as finance minister
ECB to start building new HQ in spring
European Central Bank to finally begin construction after two-year delay
Commonwealth Secretariat releases guide to aid literacy
Commonwealth Secretariat publishes teachers’ resource to promote financial literacy; efforts part of campaign launched by Central Bank of Trinidad & Tobago to promote better financial education
Fed reiterates plans for February exit
Federal Open Market Committee and governors expect to exit most crisis-fighting facilities early next year; committee keeps “extended period” pledge
Britain to abolish cheque clearing in 2018
Payments overseer says plans contingent on 2016 review demonstrating alternatives exist
Czechs surprise with rate cut
Czech National Bank opts to shave a quarter point off key rate