Capital flows
BIS’s Borio warns interacting financial cycles destabilise global system
Domestic and global cycles interact and amplify one another, BIS official says
Hong Kong cuts interest rates as economy enters recession
Commercial banks cut lending rates for the first time since 2008, as economy contracts sharply
Argentinian central bank struggles to stabilise peso ahead of elections
International reserves have fallen by 29% since opposition leader defeated president Macri in primary vote on August 11
IMF paper tracks Asian authorities’ responses to volatile capital flows
Monetary policy typically responds to several variables in pursuit of greater stability, analysis finds
‘Hegemonic digital currency’ could help fix global system – Carney
Using CBDC to facilitate online sales could bring about more rapid change, governor says
Egypt sharply cuts rates as inflation slides
Central bank resumes easing cycle, reducing rates by 150 basis points
Fund structures are ‘a big issue’ for monetary system – Carney
Immediate redemptions risk amplifying capital flow volatility
Mark Carney on joined-up policy-making, forward guidance and Brexit
BoE governor rules out negative rates and change to inflation targets, offers update on too-big-to-fail; and more
IMF’s Adrian on the big tech threat and why a ‘non-system’ works
IMF’s financial counsellor talks about efforts for the fund to craft well-targeted policy guidance
PBoC is navigating into uncharted waters on RMB
Renminbi depreciation will cause problems at home and abroad
Non-banks attracting more global liquidity than banks for first time
In Q1, more liquidity flowed to non-banks than banks for the first time in 40 years of BIS data
The tricky business of electing a new IMF managing director
New leadership will face overrepresentation of advanced economies and possibility of dwindling resources
Do stablecoins like libra differ from other crypto assets?
Sayuri Shirai assesses the implications of stablecoins for stability, monetary policy and regulation
BIS paper highlights new channel for Mundellian ‘dilemma’
Authors weigh financial channel as explanation for why trilemma has become dilemma
Surge in cross-border credit led by non-banks
Cross-border claims rise at fastest rate since the global crisis, BIS figures show
PBoC unveils 11 measures to open up China’s financial sector
Analyst says actions most detailed so far in loosening foreign ownership restrictions
Senior policy-makers differ on future of global monetary system
Trichet, Lipton and Reinhart debate whether SDR could play a bigger role in global stability
Bank of Thailand voices concerns over baht appreciation
Thai central bank says it has cut supply of short-term bonds to curb hot money inflows
BIS says theory behind EME policy must catch up with ‘reality’
Situation is similar to adoption of inflation targeting in early 1990s, says BIS annual report
IMF’s IEO outlines plan for capital flows evaluation
Some countries say the fund may now be too quick to endorse capital flow restrictions
Facebook unveils new ‘currency’
Social media group says it plans to “reinvent money” with payment system backed by liquid reserves
Costa Rica lowers reserve requirements on domestic currency
Move follows IMF recommendation to boost domestic currency use in highly dollarised economy
Carney warns of ‘global liquidity trap’
BoE governor says model of “capital flows at risk” highlights important vulnerabilities
Colombian central bank suspends reserves accumulation
Board wants to assess the impact higher reserves may have on the peso’s exchange rate