Australia
RBA’s Lowe says productivity still a problem
Australia has proven resilient through an uncomfortable rebalancing phase, but the economy is still plagued by disappointing productivity growth, deputy governor says
Australian central bank adds S Korean won to reserve portfolio
Australian central bank slashes euro holdings by 20% as diversification into alternative currencies continues
RBA’s Richards sees possibility for digital Australian dollar
New card regulation to be ready by May, says Richards; digital currency a possibility in the ‘more distant future’, but RBA not ‘actively considering’ it
RBA board agrees China has ‘scope to respond’ if outlook worsens
Minutes from February meeting reveal board is wary a ‘sharp slowing’ in economic activity could spill over to other economies in region, though Chinese authorities could respond
Australian governor Stevens stresses policy ‘flexibility’
Governor says Reserve Bank of Australia has scope to ease monetary policy if need be, though economy expected to continue expanding
RBA flags scope for easing despite inflation rebound
Central bank emphasises need to battle below-target inflation despite recent uptick; holds key interest rate but says future cuts may still be an option
Future Fund shifts from equities to cash and achieves above-target return in 2015
Australia’s sovereign wealth fund, the Future Fund, shifted from equities to cash to reduce its risk exposure, senior management say; yearly returns were above target
Sovereign investor of the year: Future Fund
Australia’s sovereign wealth fund took the restrained decision not to increase its risks to chase returns in 2015. Instead it focussed on improving its operational framework
Debelle highlights ‘rich potential’ in regulatory data
Regulatory reporting is still in its infancy, but already useful trends are starting to emerge, the RBA assistant governor says
Paper uses Okun’s Law to assess Australian potential output
Discussion paper published by Reserve Bank of Australia estimates potential output growth has fallen from around 5% in the 1970s to 2.9% now
Enforcement of global FX code of conduct still a work in progress, Debelle says
Reserve Bank of Australia’s Debelle notes the FX market is regulated differently from one jurisdiction to another when asked about enforcement of the planned global code
Stevens calls for end to obsession with central forecasts
RBA governor emphasises the uncertainty around forecasting; says he considered abolishing the central line in fan charts
RBA’s Debelle outlines potential benchmark rate reform
Australian consultation paper suggests modifications to the calculation of the bank bill swap rate, with one option expanding the set of transactions covered
RBA’s Kent sees positive side to Chinese readjustment
China’s economic rebalancing is likely to bring benefits to Australia’s economy as well as costs, Reserve Bank of Australia assistant governor says
Australian property market must be watched by regulators, assistant governor says
Residential and commercial property prices are rising rapidly in Sydney and Melbourne, Australian assistant governor says; evidence of some ‘slipping in lending standards’
RBA deputy disappointed by data inaccuracies
Philip Lowe discusses two problems that have emerged in reporting of loans in housing market, stressing value of high-quality data
Rising mortgage rates do not demand policy response, says RBA’s Stevens
Recent increases in mortgage rates have reversed some of the central bank’s easing, but there is no need to lean against the movement at present, governor says
People: Finland names new head of statistics; RBI appoints executive director
Bank of Finland promotes head of macro-prudential analysis division to head of financial stability and statistics department; RBI gets new executive director; and more
RBA sees no ‘financial stability case’ for repo CCP
Central bank decides not to actively encourage the (re)creation of a repo-focused central counterparty, but says it will work with the industry if it wants to take the project further
RBA reduces share of euro in reserves
Australian central bank cuts euro holdings by 10% while nearly doubling RMB share of reserve portfolio; running yield ‘very low' at 0.2% at end-June, annual report says
RBA’s Edey explains cross-border treatment of CCPs
Australia will not insist on domestic incorporation for overseas CCPs; regulators favour a ‘graduated framework’ for imposing additional requirements on the most important CCPs if necessary
RBA’s Richards gauges sentiment on card payments regulation
Head of payments policy highlights areas of ‘common ground’ in response to issues paper on card payments regulation, but also some ‘real differences’ between stakeholders
RBA’s John Simon says low rate a ‘poor predictor’ of crises
Low interest rates of themselves did not cause the global financial crisis and have always been a poor predictor of economic instability, senior Reserve Bank of Australia economist argues
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