United Kingdom
Carney says UK rate hike still some way off
Continued weakness in key indicators begins to puzzle policy-makers as Carney suggests there is room for the MPC to wait longer; CPI and core inflation on the rise
ONS to launch new website in response to review
The new site will draw on feedback from more than 600 people; US Fred model is something to strive for, says the deputy national statistician for economic statistics
FCA review paints picture of institution rattled by setbacks
Independent review of UK watchdog reveals low morale and risk aversion in the face of comms scandal and loss of chief executive Martin Wheatley, plus fears of government meddling
Volatility fails to shake outlook as BoE holds rates steady
Latest MPC minutes are largely preoccupied with discussion of international developments, but falling oil prices and market volatility do not herald major change in stance
BoE moves to close bonus clawback loophole
Under new proposals, banks will no longer be able to circumvent malus and clawback rules by buying out new employees’ bonuses
Bank of England paper explores exchange rate pass-through using ‘big data’
Author finds the pass-through to import prices varies depending on the size of the exchange rate movement at the micro level, but it is a different story at the macro level
Bean says statistics agencies struggling to keep pace with the modern economy
Former BoE deputy warns of a widening gulf between the structure of the economy and how ageing statistical techniques represent it; urges UK statistics office to be more ‘agile’
Emerging markets more vulnerable than developed economies to policy reversals, paper finds
Working paper published by the IMF considers impact of unconventional monetary policy in major economies on global liquidity and monetary conditions
Bank of England paper explores time-varying capital requirements
Authors use firm-bank level database from UK to examine impact of higher capital requirements on asset growth of borrowing firms; also consider interaction with monetary policy
Bank of England tackles challenges flagged by staff survey
While the results show a strong, positive corporate culture at the BoE, the central bank has identified four areas for improvement
BoE’s FPC in line for powers over buy-to-let market
Government proposes handing central bank powers of direction over LTV and ICR limits for buy-to-let mortgages, over a year after the BoE first requested them
Bonus cap may impact other pay regulation, research from Bank of England warns
Researchers see potential for bonus caps to clash with other remuneration regulation; level of pay ‘at risk’ declines
UK payment systems regulator assesses compliance in first annual report
First PSR annual report shows progress is being made towards access and governance goals, but there are still areas for improvement
HBOS investigation reveals possible ‘loose rivet’ in UK regulation
Accounting standards and auditing may be a weak point that is only just starting to be addressed, according to MPs at a parliamentary committee hearing on the failure of HBOS
BoE paper explores monetary and macro-prudential policy interactions
Macroeconomic and financial frictions in an economy can require ‘intervention of opposite direction’ on the interest rate, which a second instrument can help mitigate, paper finds
UK banks must raise extra £27bn to meet resolution needs under BoE proposals
Large banks will have to issue additional subordinated debt to meet MREL requirement under proposals designed to ensure banks will continue to operate under resolution
Further macro-prudential policies ‘may be needed’ in UK, says IMF
Staff say existing measures have eased but not eliminated risks to household finances; encourage BoE to keep monetary policy unchanged until inflationary pressures are ‘clearer’
Economists point to key factors for BoE rate decision coming into ‘sharper relief’
Developments in labour market represent crucial signal for monetary policy move, but shocks from a Fed hike, commodities or further turbulence in emerging markets could all come into play
Bean calls for overhaul of UK statistics
Report dissecting UK statistics production calls for national statistics office to become more agile, make use of new forms of data, and tackle shortcomings
BoE plans capital framework redesign
The central bank hopes the realignment of capital requirements from individual banks to a system-wide buffer will simplify the framework and allow the FPC to respond to threats earlier
Two UK banks fall short in BoE stress tests
RBS and Standard Chartered pass 'hurdle' rates but fall short on other capital requirements in 2015 Bank of England stress test; tests redesigned since 2014
UK authorities extend Funding for Lending Scheme again
Bank funding scheme will now be tapered over two years, with new banks offered the chance to be involved; lending to SMEs up over the year
Economists outline improved DSGE forecasting method
Bank of England working paper attempts to improve forecast performance by using a multi-step approach to estimating parameters, delivering what the authors say are ‘significant’ improvements
UK regulators to reopen flawed HBOS investigation
Report critical of financial supervisors who failed to see problems developing or take proper enforcement action, and of bank managers who created a fatally flawed business model