Central Banks

News about policymaking in the world’s major central banks with a focus on the People’s Bank of China, the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the Reserve Bank of Australia.

Bank of England proposes stricter rule for banks to calculate capital

The Bank of England has mulled requiring larger banks to calculate core capital ratios using a 'standard' formula used by smaller banks as well as using in-house models, whose consistency has been questioned. Photo: EPA

Britain’s banks could have to use a stricter method than global peers for calculating a key measure of capital from next year to make gaming the rules harder, according to the Bank of England.

Sunday, 12 July, 2015, 6:52pm

Japan's central bank sticks with massive asset buying programme

Bank of Japan appears no closer to hitting its inflation target. Photo: Bloomberg

The Bank of Japan stuck with its massive monetary stimulus programme yesterday, brushing off a lack of inflation two years after it vowed to lift the economy from years of falling prices.

17 Apr 2015 - 4:21pm

Australia central bank says further rate cut could be needed

The Reserve Bank of Australia sees risks beginning to build in the nation's commercial property market. Photo: Bloomberg

Australia's central bank said another interest rate cut could be needed to support an economy that is expanding at a below-average pace, while noting emerging risks in the nation's commercial property market.

17 Apr 2015 - 4:21pm

Central bank peer pressure seen as factor in rush to cut Asian rates

In Manila, the central bank hasn't cut rates because growth is holding up and consumers are spending. Photo: Bloomberg

Spare a thought for Amando Tetangco. The Philippine central bank chief, a shooting enthusiast who has likened battling inflation to firing a handgun, has the strongest currency in Asia this year.

17 Apr 2015 - 4:21pm

China allows five small banks to cut reserves further

The People’s Bank of China cut the required reserve ratio for all banks on February 4 by 0.5 percentage points. Photo: Reuters

Five city banks listed in Hong Kong and mainland China have been allowed to cut their required reserve ratio by an extra 0.5 percentage points as part of fresh efforts to pump up liquidity and aid small firms as China’s economic growth slows, the Securities Times reported on Thursday.

17 Apr 2015 - 4:21pm

Why monetary easing is not so easy in China

China isn’t necessarily headed for a crash in 2015 but those counting on the PBOC to prop up growth need to reconsider their confidence. Photo: Bloomberg

As Chinese leaders attempt to guide their slowing economy into a soft landing, they’re counting heavily on People’s Bank of China Governor Zhou Xiaochuan to keep conditions stable.

17 Apr 2015 - 4:17pm

Shanghai Bank chairman in PBOC party committee

Four of the People's Bank of China's deputy governors are expected to be replaced this year. Photo: Bloomberg

The chairman of Shanghai Bank and deputy secretary of China Investment Corporation Fan Yifei has been appointed as a party committee member of the People’s Bank of China, according to a notice posted on the central bank’s website.

17 Apr 2015 - 4:17pm

Bank of England eyes interest rates as inflation set to drop below zero

BOE revised up its growth forecasts and predicted wages would grow faster, suggesting voters may benefit from Britain's economic rebound before May 7 polls. Photo: Bloomberg

The Bank of England sees little need to raise interest rates this year, and stands ready to cut them if inflation dips more deeply into negative territory than expected, a new set of forecasts showed yesterday.

17 Apr 2015 - 4:19pm

Central Banks’ race to the bottom fraught with risks

In the first five weeks of 2015, as many as eight central have surprised markets by cutting their benchmark rates. Photo: EPA

Another week, another unexpected cut in interest rates from a central bank.

On Tuesday, it was the turn of the Reserve Bank of Australia (RBA) which trimmed its benchmark interest rate by 25 basis points to a record low of 2.25 per cent - a move which ended an 18-month pause and which only 7 of nearly 30 analysts polled by Bloomberg had anticipated.

17 Apr 2015 - 4:21pm

ECB launches massive stimulus programme to revive euro zone

ECB President Mario Draghi speaks at news conference in Frankfurt. Photo: AFP

The European Central Bank took the ultimate policy leap on Thursday, launching a government bond-buying programme which will pump hundreds of billions of euros into the sagging euro zone economy.

17 Apr 2015 - 4:18pm 3 comments

Bank of England voted unanimously to keep interest rates on hold

The Bank of England has kept interest rates at record lows since the global financial crisis. Photo: Bloomberg

The Bank of England voted unanimously to keep interest rates on hold this month for the first time since July last year, after two policymakers unexpectedly dropped their call for higher rates in the face of tumbling inflation.

17 Apr 2015 - 4:21pm

Surprise! New arrow in central banks' quiver as rate slashing and money printing reach best-by date

Wrong-footing markets has become a defining policy tool for the ECB since Mario Draghi became its president. Photo: Reuters

After slashing interest rates to almost nothing and printing trillions of dollars, central banks are becoming increasingly reliant on another policy weapon: sucker punching markets.

The European Central Bank shocked investors and forecasters on Thursday by cutting its main refinancing rate to a record low, reacting to a shock decline in inflation.

11 Nov 2013 - 1:47pm

Time for more easy money

The Federal Reserve may have more scope to increase supply of US dollars as inflation shows little sign of picking up. Photo: Bloomberg

Slowing inflation is giving central bankers scope to provide the world economy with more liquidity and lower interest rates for longer, all in the name of price stability.

30 Apr 2013 - 4:28am

Adding shine to stimulus

Gold has had a 12-year bull run but price falls this week could give central bankers more reason to keep pump-priming. Photo: AP

The slump in gold may hand activist central bankers more reasons to pursue the easy monetary policy that helped drive up the metal's price in the first place.

18 Apr 2013 - 5:33am

Quantitative easing endgame is nothing to lose sleep over

Since the bubble economy burst at the beginning of the 1990s, Japan's gross government debt has expanded from 66 per cent of GDP to reach 245 per cent last year, as banks rely on increasing purchases of government bonds to make up for falling demand for loans from Japan's risk-averse businesses and individual borrowers. Photo: Reuters

With the world's major central banks printing money at unprecedented rates to fund governments' ballooning deficits, some investors are worried about a generalised collapse in the bond markets.

18 Apr 2013 - 5:33am 1 comment