United Kingdom
The Brexit conundrum
The Bank of England has only limited room to respond to a hard Brexit
BoE’s Vlieghe says bleaker outlook calls for more cautious policy
Weaker growth and Brexit uncertainty imply one or two hikes a year may be too fast, he says
UK cash system needs revamp, says Payment Systems Regulator chair
Charles Randell tells lawmakers the regulator will look at entire cash provision infrastructure in 2019
Brexit solution that ‘works for all’ must be found – Carney
BoE governor calls Brexit an “acid test” of a “new global order”
UK lawmakers demand end to inflation index ‘merry-go-round’
UK Statistics Authority called upon to seek permission from finance minister to amend RPI errors
UK economy stumbles as Brexit looms
Quarterly growth slips to 0.2% in final quarter of 2018, and monthly growth turns negative in December; business investment also down
BoE’s Taylor says external members are now better prepared
External members are now better briefed by BoE staff, but still avoid “group think”
BoE offers bleak forecasts as Brexit 'fog' deepens further
Rates stay on hold as central bank eyes growing damage from Brexit uncertainty
Low rates can harm productivity, say Liu, Mian and Sufi
Low rates may end up discouraging investment across the economy, authors say
People: Israeli deputy to leave the central bank
Baudot-Trajtenberg to step down from deputy governor post; Argentina gets new board director and president of national mint; and more
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
BoE opens doors for debate on the future of central banking
Event breaks new ground in central bank engagement with the public; participants offer both positive and negative feedback
Central bank comms affect long-run uncertainty – BoE paper
BoE’s inflation report has effects on long-run bond yields, paper finds
Data services: Vizor Software
The Irish tech company has rolled out major updates to pave the way for more agile supervision as its scalable system won major repeat business with Sama and the Bank of England
‘Unsustainable’ debt needs more thought – BoE’s Broadbent
Sustainable debt levels can differ between economies, and may not be observable – deputy governor
UK’s Link implements new fees in bid to halt ATM closures
Subsidy paid by banks to cash machine operators rises to up to £2.75
Debt growth a better warning signal than levels – BoE’s Broadbent
Deputy governor says countries with high debt levels did not necessarily suffer more during the 2008 crisis
Dutch central bank and regulator call for AML law for crypto assets
But regulations should change to make crypto asset financing easier for small firms – DNB
Currency services: De La Rue
2018 was a busy year for the UK-based banknote provider as it secured new clients and transformed its focus towards technology
BoE paper studies CoCo effects in ‘one-shot game’
Game theoretic approach suggests CoCos cut risk-taking in certain circumstances
Brexit might allow simpler regulation for small UK firms – PRA chief
Sam Woods says “simpler, not weaker” regulation might boost both competition and safety
Ireland ready to shield insurance policy-holders in ‘hard Brexit’ – deputy governor
Irish financial system should prove resilient if UK quits EU without a deal, Ed Sibley says
UK lawmakers demand fix for RPI miscalculation
House of Lords says Statistics Authority’s failure to fix error has left many members of public poorer
BoE’s leveraged loan research draws interest from overseas
UK exposures are modest but firms in US and Japan have bigger holdings of CLOs, which carry echoes of the subprime mortgage crisis