Central Banking
Riksbank paper offers method for tackling distorted forecast evaluation
Authors adjust for different amounts of information available, allowing them to overcome distortions in forecast evaluation
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
BIS paper examines impact of money market deregulation and integration
Integration of money markets and ability of banks to raise funds using variety of substitutable instruments has implications for monetary policy, paper says; deregulation results in larger open market operations
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
‘Absolutely urgent’ for Mexico to strengthen fiscal stance – Sánchez
Bank of Mexico deputy governor stresses need for fiscal revamp to bolster the Mexican economy as monetary policy can only carry so much weight
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
Mexico inflation could be affected by exchange rate and US events
Mexico’s board to closely monitor exchange rate pass-through on consumer prices, quarterly review says; outcome of US election and the normalisation of the Fed's interest rate also a concern
National Bank of Denmark warns of growing bubble in Copenhagen
Report says housing market in country as a whole looks relatively stable, but Copenhagen’s market is close to the danger zone, following first “statistical bubble test”
ECB’s QE policies have significant spillovers into CESEE economies, paper argues
Researchers examine effects on investment of quantitative easing by the European Central Bank
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
Wage Phillips curves in eurozone steepened after 2008 – paper
Germany was the exception among major eurozone economies, Bank of Italy paper argues
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
Paper presents new model of interbank loan market
“Novel” model should help policy-makers think through real-life scenarios, researchers say
BIS’s Borio: leaning against the wind must be systematic
Claudio Borio says using monetary policy to stabilise the financial cycle is only likely to be effective if done all the time, not just when trouble is brewing
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
BoE shines light on its gender pay gap
Men are still paid more than women at the central bank, though the gap is narrowing, and smaller within pay bands than across the organisation