Central Banks

  • 2019-07-15 21:44


    TOKYO (MNI) - The Bank of Japan said Tuesday it has been appointed Koji Nakamura as general manager for the Americas, to oversee U.S. economic and financial conditions from its New York branch office.

    Nakamura is a former deputy director-general of the BOJ's International Department and a former manager of the Bank's Matsumoto branch.

    Nakamura is also a former head of the financial system research division who compiled the Financial System Report at the BOJ Financial System and Bank Examination Department.

    --MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
    --MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

    [TOPICS: MMJBJ$,M$A$$$,M$J$$$]

  • 2019-07-11 13:35


    By Jean Yung

    WASHINGTON (MNI) - Inflation that is running below the Federal Reserve's 2% target risks dragging down inflation expectations and pushing inflation down further over the longer run, New York Fed President John Williams said Thursday.

    "If inflation stays too low, people will start to expect it to stay that way, creating a vicious cycle, pushing inflation further down over the longer term, and making it harder to achieve our goals through monetary policy," he said in remarks prepared for the University at Albany - State University of New York.

    He additionally warned that the slowdown abroad will dampen U.S.

  • 2019-07-11 10:17


    By Luke Heighton

    FRANKFURT (MNI) - The Governing Council of the European Central Bank (ECB) has appointed three new members to its supervisory board.

    Edouard Fernandez-Bollo, Kerstin af Jochnick and Elizabeth McCaul will each serve a five-year non-renewable term, and will be responsible for planning and carrying out the ECB's banking supervision.

    Fernandez-Bollo is currently Secretary General of the Autorite de controle prudentiel et de resolution, the French national competent authority.

  • 2019-07-11 09:45


    By Luke Heighton

    FRANKFURT (MNI) - Household inflation expectations may be better predictors of future inflation outcomes than those of professional inflation forecasters, including those of financial markets, the European Central Bank's head of Market Operations said Thursday.

    There is "tentative evidence suggesting that household inflation expectations are better predictors of future inflation outcomes," Benoit Coeure said, as euro area consumers "become less likely to expect inflation outcomes that would be inconsistent with the ECB's definition of price stability."

    Here are the key points from the speech in Frankfurt:

    - Developments over the past year indicate that a growing gap has emerged between the inflation expectations of market participants on one side,

  • 2019-07-11 05:30


    -BOE FPC: 2018 Stress Test Covers Worst Brexit Outcomes -FPC Leaves Countercyclical Buffer Unchanged At 1%

    By Irene Prihoda and Les Commons

    LONDON (MNI) - The Bank of England Financial Policy Committee still sees the UK financial system as resilient to, and prepared for, the wide range of future risks it could face, including a worst-case disorderly Brexit, according to the July Financial Stability report, published Thursday.

    Following are the main points from the Bank's FSR:

    --Although the perceived likelihood on a 'no-deal' Brexit has increased

    since the start of the year, but preparations made by UK financial institutions see them in a good position to navigate any issues.

    --The FPC still sees its 2018 bank stress test of major UK banks as

    sufficiently severe to co

  • 2019-07-10 15:53


    By Jean Yung

    WASHINGTON (MNI) - Federal Reserve Bank of St. Louis President Jim Bullard on Wednesday called for a quarter-point interest rate cut at the July 31 FOMC meeting and added that one more rate cut may be warranted by the end of the year.

    "I would like to make modest moves to re-center inflation and inflation expectations at our 2% target," he told reporters. Lowering rates would help the Fed "build credibility" for its commitment to its 2% inflation target and "take out some insurance" against the risk that the economy slows more than officials currently expect, he said.

  • 2019-07-10 14:48


    By Jean Yung

    WASHINGTON (MNI) - The Federal Reserve should continue running down its balance sheet through September even if it cuts interest rates before then, Philadelphia Fed economist Roc Armenter said in an interview.

    Adjustments to the federal funds rate remain the primary means of adjusting the monetary policy stance, so "I do not see any need to review or revise the balance sheet policy in the short term," he told MNI last week.

    "I'm in favor to stay on course, finalize asset redemptions in September, and start the second stage of the program of keeping the overall size of the balance sheet constant while letting reserves decline slowly with growth in currency and other non-reserve liabilities," he said.

    Powell on Wednesday reiterated that the FOMC is prepa

  • 2019-07-10 13:10


    -Tenreyro: Unlikely To Back Rate Hike In Next Few Months If Brexit Deal Done

    LONDON (MNI) - Bank of England Monetary Policy Committee member Silvana Tenreyro said that in her view policy was most likely to be eased in the event of a disruptive Brexit but that this was not certain.

    Even if there were to be a Brexit deal then the external MPC member said she would probably not back tightening policy.

    In a speech at Birkbeck, University of London, Tenreyro said that Brexit uncertainty had increased and that markets were now factoring in a rate cut.

  • 2019-07-10 11:16


    By Jean Yung

    WASHINGTON (MNI) - Worries continue to pile up on the business side of the U.S. economy, Federal Reserve Chair Jay Powell told lawmakers Wednesday as he laid out reasons for the Fed to cut rates as soon as this month.

    The U.S. consumer and the job market are strong, he remarked. "The issue is really more now on the business side where we see business confidence and business investment weakening a bit."

    "The bottom line for me is the uncertainties around global growth and trade continue to weigh on the outlook, and, in addition, inflation continues to be muted," Powell said.

    Ahead of the June FOMC meeting and since then, economic data in Europe and Asia has "continued to disappoint," he said.

  • 2019-07-10 08:30


    By Jean Yung and Kevin Kastner

    WASHINGTON (MNI) - Federal Reserve Chair Jay Powell on Wednesday reinforced expectations for an interest rate cut this month in testimony to Congress by highlighting sustained uncertainties over trade policies and global growth as factors threatening the U.S. economic expansion.

    "It appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," he told lawmakers in the House Financial Services Committee, citing incoming data and other developments since the FOMC last met in June.

    At the same time, inflation is running below target and "inflation pressures remain muted," he said.