Central Banking
PBoC imposes reserve requirements on offshore deposits for first time
New measure designed to curb CNH short-selling and shows PBoC determination to stabilise offshore market in wake of recent gyrations, analysts suggest
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
Polish governor says inflation will rise slower than expected
Inflation will not turn positive in January 2016 as previously expected, governor Marek Belka says; monetary policy council keeps policy rate unchanged
Flurry of new central bank heads could continue into 2016
The past three months have brought 10 new central bank governors and a Fed president, after a period of relative stability; Central Bank Directory 2016 shows other terms expiring this year
IMF staff say tighter macro-pru measures ‘may be warranted’ in Slovakia
IMF staff have called for Slovakia’s central bank to boost its oversight of housing lending and to consider raising the counter-cyclical capital buffer for the country’s banks if growth continues
ECB's Cœuré wants ‘corrective arm’ of EU tool used ‘forcefully’
European Central Bank executive board member stresses importance of sustainable rebalancing in the eurozone; wants to see potential of macroeconomic imbalance procedure realised
Angola central bank’s new website draws on emerging best practices
Responsive website launched for 2016; work in Brazil, Portugal, South Africa and UK were ‘points of reference’ in process
Jamaican report says inflation risks balanced for 2016
Latest forecasts suggest inflation will rise to lower end of Bank of Jamaica’s target range in coming months; downside risks include reversal in food prices
BoJ paper: inflation expectations do not match target
Study of ‘dissonance’ in forecasts between economic agents and the central bank finds people only believe the BoJ will hit its target in the short to medium term – after that, inflation drops
Ukrainian governor: banking system 'largely cleaned up'
Ukraine’s central bank governor says the country’s commercial banking system has been largely reformed; enhancing creditors’ rights key to resumption of lending, she argues
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 paper seeks to improve forecasts with adaptive model
Using an adaptive model in conjunction with heavy-tailed t-distributions allows authors to deliver ‘substantial improvements’ in forecasting inflation
Basel Committee completes trading book review
Much-anticipated redesign of market risk framework seeks to capture risks the Basel accord failed to guard against in 2008; impact study implies median 27% increase in capital charges
Growing case for planning Cambodian de-dollarisation, paper says
Cambodia needs a strong macroeconomic framework for de-dollarisation to be successful, research says; economic and political stability a good starting place
Brazilian paper charts impact of inflation signal on expectations
Agents update forecasts immediately after new information is released and the impact of new information is dependent on ‘precision’, a working paper suggests
HKMA to raise countercyclical buffer by maximum in 2017
Hong Kong Monetary Authority will raise banks’ counter-cyclical buffers by the maximum amount in January 2017; risks still present in credit and housing market, Norman Chan warns
Indonesia cuts interest rates following Jakarta attack
Local reports suggest central bank's board was meeting at time of bomb blasts in downtown Jakarta; rate cut ‘should provide overdue boost' to the economy but comes with risks, says analyst
Sarb deputy governor sees growing inflation risks ahead of MPC meeting
South African Reserve Bank policy-makers must assess ‘very carefully’ whether its stance remains appropriate, Mminele says; MPC meets January 21
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
Europe needs ‘consistent’ policy on solvency issues, Lautenschläger argues
Decisions needed on whether the SSM has competence in solvency issues currently dealt with at national level, Lautenschläger argues; calls for reform to ‘routine’ decisions process
SNB’s Zurbrügg lays out considerations around interventions
Vice-chairman of governing board says there is no ‘one-size-fits-all’ method for deciding when or how to intervene in the foreign exchange market
Monetary policy easing increases systemic risk-taking, paper finds
Brazilian domestic monetary policy is more statistically significant in this regard than foreign monetary policy, working paper suggests
Survey data offers chance to assess eurozone macro-prudential policies, paper argues
Data from the eurozone’s Bank Lending Survey can be used to analyse the effectiveness of different macro-prudential policies, an IMF working paper argues; subject is little known, researchers say
RBI, BIS gain access to China interbank foreign exchange market
Second batch of official investors receive permission to trade FX spot and derivatives onshore; MAS and BoK also among the seven institutions