Central Banking
IMF says real interest rates have fallen sharply since 1980s
Rise in emerging market savings rates, increase in demand for safe assets and recent fall in yields in advanced countries are the major contributors to real rate decline since the 1990s
Seychelles makes ‘opportunistic’ FX purchases
Central Bank of Seychelles annual report outlines how it took advantage of foreign exchange inflows to bolster its reserves by almost 40% in 2013
Jeremy Stein quits the Federal Reserve
Jeremy Stein, who joined the Federal Reserve board of governors in May 2012, will step down four years early
Kenya could quadruple central bank capital
Kenya looks set to replace the piecemeal legislation governing the central bank; new bill would boost its capital levels, reduce government influence and increase the governor’s term
FOMC member says 3% growth would prompt fed funds rate 'lift-off'
Atlanta Fed president Dennis Lockhart advocates a 'dashboard' approach to forward guidance and says quantitative easing is tapering 'predictably'
Central Bank of Brazil raises Selic rate amid uptick in inflation
Central Bank of Brazil hikes rate by 25bp to 11% following upward revision of inflation for 2014; analysts predict an end to year-long tightening cycle
Draghi opens door to QE as ECB holds
European Central Bank president Mario Draghi says governing council discussed asset purchases in latest meeting; votes to hold rate despite more disinflation
Countries in monetary union should index sovereign debt to GDP growth
Bank of England working paper finds GDP-indexed bonds should be used more widely, especially by countries with volatile GDP growth or in monetary unions
Kenya's M-Pesa mobile money app launches in Romania
East European country is the first territory in Europe to get the mobile cash transfer technology, which also launched in India last year
Fannie and Freddie served as 'disciplining device' in sub-prime market
US mortgages eligible to be bought by Fannie Mae and Freddie Mac before the financial crisis had 'similar ex ante risk characteristics' to other mortgages, but performed better during crisis
Bank of Canada looks to anecdotal evidence amid economic models' ‘weakening performance'
Governor Stephen Poloz says experiences of faltering economic models last year has led the bank to focus increasingly on surveys and meetings with local businesses
Lagarde calls for co-ordination to contain ‘spillovers' and ‘spillbacks'
Speech warns advanced economies they can suffer from negative feedback when their policies cause spillovers in emerging markets
Fed switches MBS purchases to proprietary platform
The New York Fed, which implements FOMC policies, will start using its FedTrade platform to buy mortgage-backed securities later this month
Chilean peso's precipitious fall is 'desirable', says Vergara
Central Bank of Chile governor Rodrigo Vergara says floating exchange rate regime has absorbed terms of trade shock and tightening of international financial conditions
Bank of England paper estimates effects of monetary policy
A new approach outlined in a Bank of England working paper avoids three major pitfalls in estimating monetary policy's effect on growth and inflation
Carney-led FSB aims at international regulatory convergence
As systemically important banks internalise tougher regulatory environments, cross-border divergence in regimes may diminish, says FSB chair Mark Carney
Bank of Namibia replaces ‘ageing’ banknotes one year after issuance
Central bank reissued the lowest denomination banknotes in its 2012 banknote series after they were found to be ‘ageing faster than expected’
New Zealand’s loan restrictions finding their mark
Banks are reigning in their high loan-to-value ratio loans in response to central bank’s macro-prudential measures; IMF backs ‘tight limits’
Zöllner: Asset managers are biggest non-bank FX traders
Head of banking at Bank for International Settlements highlights growing role of non-bank market participants in FX
Cyclical character of US unemployment makes monetary policy a remedy, says Yellen
Federal Reserve chair Janet Yellen argues cyclical character of US unemployment renders monetary policy an important tool in fighting it
RBI holds rates as inflation follows ‘glide path’
Central bank holds key rate at 8% as tighter policy works its way through the economy; household inflation expectations continue to fall
Richmond Fed study shows 'dramatic crossover' in payment methods of US citizens
Study evaluates Fed data tracking 2,500 participants making close to 13,000 payments during three days in October 2012, shows many seniors sticking to mail as main payment method
No full disclosure on FX scandal in 2014, says FCA's Wheatley
Martin Wheatley, head of the UK's Financial Conduct Authority, says ongoing investigation unlikely to be concluded this year; laments prevailing culture of ‘ethical flexibility'
Germany pips UK to renminbi clearing deal
Deutsche Bundesbank signs MoU with People’s Bank of China three days before the Bank of England; agreements pave way for first two clearing banks outside Asia