News
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
EC finalises OTC rules, leaves key technical items to Esma
Corporate hedgers claim a victory, but details on clearing eligibility and thresholds to be tackled by new authority.
Basel III: Banks fret about return on equity
Investors could shun bank equity if higher capital levels cause returns to slip
Central banks are preferred regulators: CentralBanking.com panel
Charles Goodhart, Sir John Gieve and Paul Mortimer-Lee say regulation is best housed within the central bank but warn challenges remain
Gold to break $1,300 barrier: GFMS
Gold forecast to rise above the $1,300 mark, research body says; central banks becoming net buyers a factor
India’s Mohanty to lead review of key open market operation
Reserve Bank of India executive director Deepak Mohanty will head working group assessing liquidity adjustment facility; review will examine method in light of changing liquidity dynamics
Goodhart attacks new European supervisory structure
Academic labels three new watchdogs “a waste and a mistake”; former financial secretary Lord Myners scornful of Basel III
Contingent capital will keep markets on their toes: Canada’s Carney
Bank of Canada governor Mark Carney says a broad bail-in approach presents a promising means to rein in moral hazard; says Basel III will benefit competition
S&P boosts Argentine rating one notch
Credit ratings agency Standard and Poor’s lifts Argentina’s sovereign credit rating from B- to B; cites strong economic recovery and solid debt management strategy
Nigeria close to setting up sovereign wealth fund
President Goodluck Jonathan proposes legislation to national assembly that will pave the way for a sovereign wealth fund, say reports
Impact of Basel III core capital standards remains unclear, analysts say
As governors back higher capital standards, ex-Bank of England special adviser argues economic impact remains difficult to pin down; commentators say reforms do not address risk attitudes
Shirakawa named Asian Consultative Council chair
Bank of Japan governor Masaaki Shirakawa will take over from Bank Negara Malaysia chief Zeti Akhtar Aziz as chair of council housed within Bank for International Settlements
Canada’s Carney pushes for change in global monetary order
Bank of Canada governor warns international monetary system “an increasingly unstable hybrid of fixed and floating regimes”; cites role of G20 as premier forum for economic cooperation