News
BIS research seeks to forecast global inflation
Economist builds global inflation forecast using country-level survey forecasts, finding it can be used to improve domestic inflation projections in some countries
ECB paper examines use of eurozone bank lending survey
Changes in credit standards in the ECB’s bank lending survey serve as leading indicators for GDP and bank loan growth, researchers say
Indonesia to launch new banknote and coin series with a ‘bang’
New banknote and coin series featuring Indonesian “national heroes” to launch later this year; smallest coin will not feature in new series
Irish central bank announces major internal reorganisation
Bank will split market supervision department in two and create new financial stability directorate; full-time director of corporate affairs to be appointed
Target2 balance surge not a sign of eurozone ‘stress’ – ECB’s Praet
European Central Bank’s chief economist says €400 billion increase in outstanding euro real-time gross settlement claims is largely due to ECB’s asset purchases, rather than eurozone weakness
Markets back under central bank ‘sway’ – BIS quarterly review
Recent equity rally is “more stick than carrot”, says Claudio Borio, as latest report points to fresh signs of discomfort among banks and continued market distortions
Mark Carney: it would ‘make sense’ to get rid of UK penny
“What’s the point of the penny?” – children quiz BoE governor; Carney says as inflation rises, there might be reason to abolish the low-value coin
Andrew Bailey warns of macro impact from pensions trouble
FCA chief says low interest rates and other factors shaping the pensions market are likely to have knock-on effects on the economy, though the area is not well understood
Central banks set up task force to fortify cyber security
Central banks to review current cyber security practices; Cœuré stresses need for “adequate checks” at each stage of the payment process
Obituary: Carlo Azeglio Ciampi
Former Bank of Italy governor dies aged 95. The former partisan also held the roles of finance minister, prime minister and president
Zimbabwe to print $75 million in ‘bond notes’ in 2016
Reserve bank to issue US dollar-“equivalent” notes despite criticism from the general public; incentive facility to be backed by Afrimexbank
Greek central bank governor is ‘the real goal’ of police raid, wife says
Greek police raid the office of a company owned by the wife of central bank governor Yannis Stournaras; she denies all wrong-doing and says aim of raid is to “denigrate” her husband
BoE lays out blueprint for RTGS reboot
“Comprehensive rebuild” of current large-value payments platform will retain many core features while adding new resilience, access options, functionality and interoperability
Cœuré mulls advantages and problems of GDP-linked bonds
ECB board member Benoît Cœuré says GDP-linked bonds could protect taxpayers but pricing might be difficult; says international financial institutions could play “catalytic” role
People: BoE appoints Brexit co-ordinator; Lagarde chooses Selassie to head Africa department
Phil Evans put in charge of work on UK’s exit from European Union at the Bank of England; Christine Lagarde appoints new Africa chief; and more
Richmond Fed tries to bridge gap between rules and discretion
Economist presents research urging Fed to be more explicit about its strategy using “graphical framework”, while Jeffrey Lacker says rules offer valuable guidance to policy-makers
IMF official criticises interest rate caps in speech honouring Kenyan central bank
Interest rate ceilings can interfere with central bank independence and restrict credit access, IMF deputy managing director tells Kenyan officials
IMF's systemic risk findings called into question
Financial connectedness measure “not usually sharply aligned with systemic risk”, says Darrell Duffie
Ukrainian central bank cuts rates and promises further banking reform
Personnel director becomes acting deputy governor in charge of banking supervision; Lagarde praises conduct of monetary policy but says reform must continue
BoE signals further rate cut despite stronger-than-expected data
Package of measures announced in August led to “greater than anticipated boost” to UK asset prices; despite data somewhat stronger than expected a further rate cut is likely, minutes say
Bank of Slovenia introduces macro-prudential measures for housing market
Slovenia’s central bank has recommended lenders impose loan-to-value and debt service-to-income ratios on all new housing borrowers
Largest banks meet Basel III capital standards – BIS and EBA
Banks have improved capital and liquidity ratios, reports note, but methodology may differ from that used by industry
Riksbank highlights complexity in choice of target
Report studies case for changing target to CPIF or HICP inflation, and reinstating target band, ahead of discussions over monetary framework reforms
People: Dennis Lockhart to stand down; Buch becomes Irving Fisher committee chair
Atlanta Fed president quits after 10 years at bank; Claudia Buch becomes chair of the BIS’s stats-focused committee; new head of research at the New York Fed