Central Bank News Link List - Mar 7, 2014 - Fed seen raising rates a bit earlier after jobs report

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news. 

• Fed seen raising rates a bit earlier after jobs report (Reuters)
• RBA’s Stevens says he doesn’t see need to reduce rates further (Bloomberg)
• Russian central bank to continue emergency measures due to weak ruble (Pravda)
• Bank of Russia says preventing bankruptcy of Ukraine bank's Moscow unit (Reuters)
• NY Fed Dudley: Easy mon policy approp for 'considerable time' (MNI)
• Swiss central bank posts $10.4 bln loss on gold holdings (Dow Jones)
• BOE says rate-increase expectations rose to two-year high (Bloomberg)
• Serbian central bank steps in to support dinar (Reuters)
• Tokyo investors eye more central bank easing next week (AFP)
• Fed officials see high hurdle for changing course on QE taper (Reuters)
• Nigeria's economic growth to quicken, inflation to ease this year-IMF (Reuters)
• Philippine economic growth to breach 6 pct: central bank (Philstar)
• Fed’s Lockhart: New interest-rate guidance coming soon (WSJ)
• Monetary policy cannot solve jobs crises-South Africa’s Marcus (BDLive)
• A steady path for Indonesian monetary policy (Jakarta Post)
• ECB: E11.401 bln 3-year LTRO funds to be repaid Mar 12 (MNI)
• Mersch says ECB alone can’t boost business lending through ABS (Bloomberg)
• South Korea central bank to head for changes (Korea Times)
• Trinidad central bank denies IMF forex rule violation (Guardian)
• Botswana household debt put banks at risk (Southern Times)

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Central Bank News Link List - Mar 6, 2014 - Brazil central bank says inflation is still a concern

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.

• Brazil central bank says inflation is still a concern (WSJ)
• Fed may fall ‘behind the curve’ if GDP keeps growing: Plosser (Reuters)
• Fed’s Dudley says threshold high changing taper plans (Reuters)
• Greek central bank confirms major banks need 6.4 bln euros (Reuters)
• Fed survey: Winter storms holding back economy (AP)
• Central bankers reach for atlas as Ukraine fallout gauged (Bloomberg)
• Hungary real interest rate level should be watched – government (Reuters)
• BIS chief urges central banks to stay course of normalization (Reuters)
• BOJ ready to adjust policy if needed to achieve 2% inflation: Iwata (RTT)
• No plans to shift monetary policy approach: MAS (Business Times)
• BOE heard traders’ currency-rigging concerns years ago (Bloomberg)
• IMF said to demand greater say on Greek banks in ECB wrangle (Bloomberg)
• Fed’s Fisher: Central banks must look out for own countries (WSJ)
• BoE’s Haldane says IMF needs more funds (Reuters)
• IMF says its ‘negative image’ steers countries away from borrowing (Reuters)
• Former Indonesia central bank deputy governor indicted of corruption (Antara)
• Kazakhstan central bank toughens requirements to borrowers (Tengri News)

     www.CentralBankNews.info

ECB revises forecast for inflation down, growth higher

    The European Central Bank (ECB), which earlier today held its policy rates steady, repeated its guidance that rates are expected to "remain at present or lower levels for an extended period of time" as it trimmed its inflation forecast and raised its growth forecasts for the coming years.
    Mario Draghi, ECB president, told a press conference the moderate economic recovery was proceeding in line with expectations of "a prolonged period of low inflation, to be followed by a gradual upward movement in HICP inflation rates toward levels close to 2 percent."
    The ECB, which cut it benchmark refinancing rate by 50 basis points in 2013 to a record low of 0.25 percent, trimmed its forecast for inflation to 1.0 percent in 2014, down from its previous forecast of 1.1 percent, but maintained the 2015 forecast at 1.3 percent.
    For 2016 the ECB expects average inflation of 1.5 percent, rising to 1.7 percent in the fourth quarter of 2016, still below the ECB's target of inflation below but close to 2.0 percent. Draghi stressed that  projections three year in advance were based on several assumptions, including unchanged exchange rates and lower oil prices.
    In February, inflation in the 18-nation euro area was unchanged from January and December at 0.8 percent, and Draghi expects inflation to remain at current levels in coming months

Serbia holds rate as cautious monetary policy warranted

    Serbia's central bank maintained its policy rate at 9.5 percent, noting that inflation had now returned to the bank's target range in January but adding that caution was warranted in monetary policy due to "heightened volatility in international financial markets" that is dampening investor sentiment and may negatively influence capital flows.
    The Bank of Serbia (NBS), which intervened on foreign exchange markets on Monday after repeated interventions last month to support the dinar currency, also stressed the need for caution last month, saying the country was still in need for external financing despite rising exports.
    "By keeping the key policy rate on hold, the NBS aims to support price and financial stability in the medium term," the central bank said, adding that consistent implementation of fiscal consolidation measures should diminish the country's exposure to external risks and strained liquidity in global financial markets in connection with reduced asset purchases by the U.S. Federal Reserve.
     Further steps in reducing the country's foreign exposure and maintain economic stability and growth would come from the expected conclusion of an agreement with the International Monetary Fund, the central bank said.
    Talks between the IMF and Serbia's government started last month on a new agreement but the government needs to narrow its deficit further and save some 400 million euros.

ECB maintains rate, to release forecasts today

    The European Central Bank (ECB) maintained its benchmark refinancing rate at a record low of 0.25 percent, as expected by most economists, along with its other main rates, including the marginal lending facility rate at 0.75 percent and the deposit rate at 0.0 percent.
    In a brief statement following a meeting of the ECB's governing council, the bank said Mario Draghi, ECB president, would comment on the reason for the decision at a press conference.
   At the press conference, Draghi will present the ECB's latest economic forecasts, including its projection for 2016.
    Despite the recent improvement in the euro area's economy, Draghi has said in recent months that inflation will remain low for "a prolonged period" and provided the guidance that rates will be kept "at present of lower levels for an extended period of time."
    Last month, Draghi also said the ECB was ready to consider all available instruments and "to take further decisive action if required" to ensure that higher money market rates don't raise the cost of financing for businesses and thus prevent a faster economic recovery.
    Inflation in the 18-nation euro zone was steady at 0.8 percent in February, the same as in January and December, and well below the ECB's target of inflation that is below, but close to 2 percent.

BOE maintains stance, reinvests maturing bond proceeds

    The Bank of England (BOE) maintained its Bank Rate at 0.5 percent, as widely expected, along with its current stock of assets at 375 billion pounds as reinvests 8.1 billion of cash it received from the redemption of one of its bonds.
    The BOE has held its Bank Rate at the current level for five years since March 2009 and is expected to maintain it for about another year before raising it to control inflation from the growing economy.
    In addition to cutting its rate in March 2009, the BOE also embarked on so-called quantitative easing by purchasing assets to hold down long-term interest rates.
    One of these bonds issued by the UK Treasury, known as gilts, matured this month and the BOE will maintain the size of its asset purchases by reinvesting the proceeds in other bonds, a move that was flagged by the BOE as part its forward guidance to financial markets about its future policy stance.
    In August the BOE said it would not raise interest rates until the unemployment rate fell to 7.0 percent but strong growth and a swift decline in the unemployment rate to 7.2 percent in the three months to December forced the U.K. central bank to revise its guidance in February.

Malaysia holds rate, to keep eye on financial imbalances

    Malaysia's central bank maintained its Overnight Policy Rate (OPR) at 3.0 percent, as expected, and said inflation is expected to be affected by higher domestic costs and it would "continue to monitor for signs of destabilizing risk of financial imbalances."
    Bank Negara Malaysia's (BNM) mention of the risk of financial imbalances signals its concern over inflation from an expanding economy and the impact of disruptions in supply from adverse weather and higher domestic costs from the government's cut in fuel subsidies in September, higher utility tariffs in January and coming changes in taxes in April.
    BNM has held its benchmark OPR rate steady since May 2011 but economists are expecting the central bank to start tightening later this year to stem inflation which rose to a higher-than-expectd 3.4 percent in January, continuing the acceleration seen since December 2012 when it was 1.2 percent.
    The central bank has acknowledged the rise in inflation and expects it this year to top 2013's average rate of 2.1 percent and has said it may exceed the long-term inflation average of 3.2 percent. However, subdued external price pressures and moderate domestic demand will also contain the impact of some of these cost pressures on inflation.

Poland pushes back any change in rates until end-Q3

    Poland's central bank held its reference rate steady at 2.50 percent, as widely expected, but again pushed back any change in interest rates until the end of the third quarter of 2014 while it revised downward its forecast for inflation but raised its growth projections.
    The National Bank of Poland (NBP), which cut rates by 225 basis points from November 2012 through July 2013, also said the gradual economic recovery was likely to continue in coming months but inflationary pressures will remain subdued.
    After ending its easing cycle in July last year, the NBP said in September it would maintain rates at least until the end of 2013. But in November, the central bank said it would maintain rates at least until the end of June this year and it has now pushed back the timing for any rate rise until end-September.
    "In the council's assessment NBP interest rates should be kept unchanged for a longer period of time, i.e. at least until the end of the third quarter of 2014," the central bank said.
    In its latest monetary policy report, the central bank revised downward its 2014 inflation forecast to 0.8-1.4 percent, down from the November forecast of 1.1-2.2 percent, and the 2015 forecast to 1.0-2.6 percent from 1.1-2.6 percent. In 2016 the NBP expects inflation of 1.6-3.3 percent.

Canada holds rate, softens warning of low inflation risks

    Canada's central bank held its target rate for the overnight rate steady at 1.0 percent, as widely expected, and said inflation is still expected to remain "well below" the bank's target for some time so "the downside risks to inflation remain important," while the risks from high household debt have not materially changed.
    The Bank of Canada (BOC), which has maintained its rate since September 2010, added that "the timing and direction of the next change to the policy rate will depend on how new information influences this balance of risks."
    The BOC softened its earlier concern over inflation following an acceleration of inflation in January and December. In its previous statement in January, the central bank said the "downside risks to inflation have grown in importance."
    Canada's inflation rate has risen in the last three months, hitting 1.6 percent in January, after it fell to a revised low of 1.0 percent in October that had first triggered the central bank's concern. But the recent acceleration has eased some of its worry, with BOC Governor Stephen Poloz saying last month that the rise had made the bank feel "a little more comfortable," a remark that made it clear to most analysts that the central bank was no longer thinking about cutting rates.

Central Bank News Link List - Mar 5, 2014 - Ruble pressured by external factors, says Russian central bank

Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.

• Ruble pressured by external factors, says Russian central bank (WSJ)
• China to maintain proactive fiscal, prudent monetary policies (Xinhua)
• Fed official: U.S. economic risks from Ukraine seem manageable (Reuters)
• Britain set for sixth year of record-low interest rate (AFP)
• Further Hungarian rate cut hinges on March forecasts, minutes show (WSJ)
• BOE suspends employee as notes show currency concerns from 2006 (Bloomberg)
• Global factors caused forint swings: Hungary central banker (Reuters)
• Richmond Fed’s Lacker: 1^st rate hike will be well communicated (MNI)
• Malaysian interest-rate swaps climb before central bank review (Bloomberg)
• Kyrgyz central bank steps in to stem currency drop (BNE)
• Philippine Feb inflation eases, gives central bank room to hold rates (Reuters)
• Taiwan central bank to maintain interest rates (Want China Times)
• South Korea central bank chief: expects H2 inflation at 2.8 pct (Reuters)
• Bulgarian central bank expects a stop in falling prices in 2Q (Balkans)
• Anxious investors may opt to hunker down at home (Reuters) 

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