<![CDATA[Hedgehogs.net: '' related content (page 2)]]> http://www.hedgehogs.net/tag/bank?offset=10 http://www.hedgehogs.net/pg/blog/skinnercm/read/11468014/the-finanser-interviews-anne-boden-ceo-of-starling-bank Wed, 25 Feb 2015 08:34:08 +0000 http://www.hedgehogs.net/pg/blog/skinnercm/read/11468014/the-finanser-interviews-anne-boden-ceo-of-starling-bank <![CDATA[The Finanser Interviews: Anne Boden, CEO of Starling Bank]]>

Starling Bank is the name of a new challenger bank being set up in London. The bank’s early days show how challenging the process of creating a new bank can be, as the Financial Times explains (see end of interview).  Nevertheless, there is grand ambition to shake up the banking establishment, as outlined in this interview with founder and CEO Anne Boden.


]]> 11468014 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467995/central-bank-news-link-list-feb-24-2015-feds-yellen-flags-rate-hikes-on-meetingbymeeting-basis Tue, 24 Feb 2015 17:13:09 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467995/central-bank-news-link-list-feb-24-2015-feds-yellen-flags-rate-hikes-on-meetingbymeeting-basis <![CDATA[Central Bank News Link List - Feb 24, 2015: Fedâs Yellen flags rate hikes on âmeeting-by-meetingâ basis]]>
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.


http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467989/hungary-holds-rate-but-will-consider-rate-cut-in-march Tue, 24 Feb 2015 16:13:19 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467989/hungary-holds-rate-but-will-consider-rate-cut-in-march <![CDATA[Hungary holds rate but will consider rate cut in March]]>     Hungary's central bank maintained its base rate at 2.0 percent but said it will "consider the need for possible further easing of monetary conditions" in March when it reviews the outlook for inflation.
    The National Bank of Hungary (MNB), which ended a two-year easing cycle in July 2014 after cutting the rate by 490 basis points, said data showed a "further shift towards the alternative scenario implying looser monetary policy" and the "probability of second-round effects taking hold in the wake of disinflationary trends in the economy as well as a change in inflation expectations has increased."
    Last month the MNB also referred to its alternative scenario outlined in its December inflation report but underscored today that it was becoming more convinced of the need to ease its monetary policy stance in March to avoid a further fall in inflation expectations and persistent deflation.
    Minutes from the MNB's council meeting in January showed that its members did not yet see any second-round effects of lower oil prices so inflation was likely to move toward the central bank's 3.0 percent in the second half of 2016.
    The central bank's December inflation report included two scenarios that laid out the case for easier policy based on continued low oil prices, a weak inflationary environment and low external demand.
    The central bank said recent data for the price of market services had showed a possible rise in the probability of second-round effects of lower oil prices on the domestic economy and wages.
    Hungary's headline inflation rate fell further to minus 1.4 percent in January from minus 0.9 percent in December, the fifth consecutive month of deflation.
    Many economists had expected the Hungarian central bank to prepare financial markets for a rate cut in March and bond markets are already pricing in a rat cut. A recent poll also showed that the consensus forecast the base rate at the end of this year had failed to 1.6 percent from 2.1 percent during February.

    The National Bank of Hungary issued the following statement:

"At its meeting on 24 February 2015, the Monetary Council reviewed the latest economic and financial developments and voted to leave the central bank base rate unchanged at 2.10%.

In the Council’s judgement, Hungarian economic growth is likely to continue. While the pace of economic activity is strengthening, output remains below potential and the domestic real economy is expected to continue to have a disinflationary impact, albeit to a diminishing extent. Despite the pick-up in the components of domestic demand, capacity utilisation is expected to improve only gradually due to the protracted recovery in Hungary’s export markets. With employment rising, the unemployment rate continues to exceed its long-term level determined by structural factors. Inflationary pressures are likely to remain moderate for an extended period.

Based on the inflation data for January, consumer prices show historically low dynamics. The Bank’s measures of underlying inflation capturing the medium-term outlook still indicate moderate inflationary pressures in the economy, reflecting persistently low inflation in external markets, the moderate path of commodity prices and imported inflation, the degree of unused capacity in the economy and the moderation in inflation expectations. The continued decline in oil prices and the fall in market services prices have contributed to the further easing in inflation and core inflation, respectively. Domestic real economic and labour market factors continue to have a disinflationary impact and low inflation is likely to persist for a sustained period. Based on the low market services price index, the probability of second-round effects may have increased. However, domestic demand-side disinflationary pressures are likely to weaken significantly in the second half of the forecast period as activity gathers pace, and inflation is likely to reach levels around 3 per cent consistent with price stability in the latter half of the forecast period, accompanied by an increase in downside risks.

In the Council’s judgement, economic growth is likely to continue even as external demand has weakened slightly. According to the preliminary data release, Hungary’s gross domestic product grew in the fourth quarter of 2014 relative to both the same period a year earlier and the previous quarter. Industrial production fell relative to the previous quarter, while the trade surplus remained stable. The dynamics of retail sales have been stable and increased slightly in recent months, with the volume of sales increasing across a wide range of products. Looking ahead, domestic demand is likely to be the main engine of growth. The extended Funding for Growth Scheme is likely to promote corporate investment this year, but weak global economic activity and lower receipts of EU funding are likely to work in the opposite direction. Household consumption is also likely to pick up gradually, mainly as a result of the expected increase in the real value of disposable income and the reduced need for deleveraging. According to seasonally adjusted data, employment was broadly unchanged in the fourth quarter of 2014 relative to the previous period, with the increase in the number of those employed under public employment programmes also playing a role.

International investor sentiment has been volatile since the Council’s latest interest rate decision. The political events in Greece and the escalation of the conflict between Ukraine and Russia had a negative impact on global sentiment. But the correction in the path of world oil prices since January and the announcement on the extension of the European Central Bank’s asset purchase programme at the end of January, and then the results of the negotiations to settle the conflict between Ukraine and Russia resulted in an improvement in financial market sentiment. The forint appreciated against the euro, mainly reflecting international factors. Developments in domestic risk measures were mixed, with the CDS spread falling significantly since the latest policy decision and long-term government bond yields rising slightly. Hungary’s persistently high external financing capacity and the resulting decline in external debt have contributed to the reduction in its vulnerability. In the Council’s view, a cautious approach to monetary policy is warranted due to uncertainty about future developments in the global financial environment.

In the Council’s judgement, there remains a degree of unused capacity in the economy and inflationary pressures are likely to remain moderate in the medium term. The negative output gap is expected to close gradually at the monetary policy horizon. Looking ahead, therefore, the disinflationary impact of the real economy is likely to diminish. Based on data available since the latest policy decision, there has been a further shift towards the alternative scenario implying looser monetary policy published in the December 2014 Inflation Report, and the probability of second-round effects taking hold in the wake of disinflationary trends in the economy as well as a change in inflation expectations has increased. However, the Council judges that, based on available information, the current level of the central bank base rate yet remains consistent with the medium-term achievement of price stability and a corresponding degree of support to the real economy. If the assumptions underlying the Bank’s projections hold, achieving the inflation target points in the direction of loose monetary conditions for an extended period. The Monetary Council will consider the need for possible further easing of monetary conditions in view of the March Inflation Report projection, after a comprehensive assessment of the medium-term outlook for inflation.

The abridged minutes of today’s Council meeting will be published at 2 p.m. on 11 March 2015."

http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467982/turkey-cuts-rate-25-bps-new-cuts-to-depend-on-inflation Tue, 24 Feb 2015 12:53:21 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467982/turkey-cuts-rate-25-bps-new-cuts-to-depend-on-inflation <![CDATA[Turkey cuts rate 25 bps, new cuts to depend on inflation]]>     Turkey's central bank cut its benchmark one-week repurchase rate by a further 25 basis points to 7.50 percent, as expected, saying monetary policy decisions in the coming period would depend on how fast the outlook for inflation improves.
    The Central Bank of the Republic of Turkey (CBRT), which has been under heavy political pressure to quickly unwind a 550 basis points rate hike in January 2014, also repeated its recent guidance that it would continue to closely monitor inflationary expectations and maintain a flat yield curve until there is a significant improvement in the inflation outlook.
    Last month the CBRT cut its benchmark rate by 50 basis points, continuing the gradual process of lowering the rate from the 10.0 percent that was imposed in January 2014 in response to a sharp fall in the lira currency as emerging markets were hit by a bout of currency volatility.
    In addition to lowering the one-week repo rate, the CBRT today also cut its overnight marginal funding rate on repo transactions by 50 basis points to 10.75 percent, the borrowing rate for primary dealers to 10.25 percent from 10.75 percent and the central bank's borrowing rate to 7.25 percent from 7.50 percent.
    The borrowing rate in the late liquidity window was maintained at 0 percent while the  lending rate was cut to 12.25 percent from 12.75 percent.
    Turkey's consumer price inflation rate eased to 7.24 percent in January from 8.17 percent in December and core inflation fell to 8.8 percent in December from 9.0 percent in November.
    The CBRT said it expects the downward trend in core inflation to continue but added a cautious approach to monetary policy was required to reach a permanent decline in inflation.
    The Turkish lira currency started depreciating in April 2013 when it was around 1.8 to the U.S. dollar and hit an all-time low of 2.51 on Feb. 11 this year following renewed calls by Turkey's president, Recep Tayyip Erdogan, on the central bank to cut interest rates.



http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467972/kyrgyzstan-maintains-rate-despite-rising-inflation Tue, 24 Feb 2015 12:33:07 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467972/kyrgyzstan-maintains-rate-despite-rising-inflation <![CDATA[Kyrgyzstan maintains rate despite rising inflation]]>     The central bank of the Kyrgyz Republic maintained its policy rate at 11.0 percent, noting there are still pressures on domestic financial markets amid increased inflationary pressures.
    The National Bank of the Kyrgyz Republic, which has raised its rate by 500 basis points since July 2014, most recently by 50 points last month, added that the country's economy and its major trading partners continue to develop in an environment of "high uncertainty and vulnerability to shocks."
    The central bank also said it would continue to "take appropriate measures" to achieve a medium-term inflation rate of about 7 percent.
     The central bank said the inflation rate as of mid-February amounted to 10.9 percent, up from 10.4 percent according to preliminary data for mid-January and 10.5 percent in December.
     Kyrgyzstan's currency, the som, began depreciating in August 2014 and was trading at 61.18 to the U.S. dollar today, down 15.5 percent since then and 3.8 percent since the start of this year.
    On  Jan.30 the International Monetary Fund (IMF) said the slowdown in the economy of Kyrgyzstan, which borders Kazakhstan to the north and China to the east, would continue this year, as gold production was expected to drop and the economic crises in Russia would dampen remittances, trade and domestic demand.
    Economic growth in 2015 was likely to decelerate to 1.7 percent while inflation was expected to average about 10 percent, driven by the depreciation of the som. In 2014 Kyrgyzstan's Gross Domestic Product was estimated to have expanded by 3.6 percent, down from 10.5 percent in 2013.



http://www.hedgehogs.net/pg/blog/skinnercm/read/11467969/data-is-the-banks-battleground-are-you-fit-to-fight Tue, 24 Feb 2015 12:20:22 +0000 http://www.hedgehogs.net/pg/blog/skinnercm/read/11467969/data-is-the-banks-battleground-are-you-fit-to-fight <![CDATA[Data is the bank's battleground - are you fit to fight?]]>

I’ve developed a whole new presentation on the ValueWeb, which I’ll share at some point soon, and tried it out today for the first time.  It was interesting to gauge the audience reaction, which was overwhelmingly positive.  We then had a panel discussion at the end of the session, and one of the panellists summarised my phases of the internet as follows: “the first three generations were all about nuts and bolts, and focused upon quantitative aspects of information, access and trade; the second two generations were then all qualitative, about feelings, emotions and relationships.”


]]> 11467969 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467964/fiji-maintains-rate-twin-objectives-still-intact Tue, 24 Feb 2015 11:13:04 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467964/fiji-maintains-rate-twin-objectives-still-intact <![CDATA[Fiji maintains rate, twin objectives still intact]]>     Fiji's central bank maintained its benchmark Overnight Policy Rate (OPR) at 0.5 percent, saying its twin monetary policy objectives remain intact despite a rise in credit and imports that have put some pressure on the balance of payments.
    The Reserve Bank of Fiji (RBF), which has held rates steady since November 2011, added that inflation was forecast to remain "at comfortable levels throughout 2015" given soft global commodity prices and low inflation among trading partners.
    As of Feb. 24, Fiji's foreign reserves amounted to $1.806.3 billion, sufficient to cover 4.5 months of imports, down from $1.842.5 billion as of Jan. 29.

   The Reserve Bank of Fiji issued the following statement:

"The Reserve Bank of Fiji (RBF) Board at its monthly meeting on 24 February agreed to maintain the Overnight Policy Rate (OPR) at 0.5 percent.
    In announcing the decision, the Governor and Chairman of the Board, Mr Barry Whiteside stated that aggregate demand continues to expand aided by higher consumption, investment and Government spending.  As a result, credit and imports have risen and put some pressure on the overall balance of payments position.  However, despite the risks, the outlook for the twin objectives of monetary policy remains intact for now.

    Inflation was 0.2 percent in January but is expected to increase slightly from February onwards as the impact of free primary and secondary tuition falls out.  Nonetheless, inflation is forecast to remain at comfortable levels throughout 2015 given the soft global commodity prices (oil and food) and low trading partner inflation.  Foreign reserves were around $1,806.3 million on 24 February, sufficient to cover 4.5 months of retained imports of goods and non-factor services and are projected to remain adequate throughout 2015.  
 The Chairman concluded that, “the Reserve Bank will continue to monitor international as well as domestic developments and re-align monetary policy stance if needed.”


http://www.hedgehogs.net/pg/blog/skinnercm/read/11467957/things-worth-reading-24th-february-2015 Tue, 24 Feb 2015 06:19:04 +0000 http://www.hedgehogs.net/pg/blog/skinnercm/read/11467957/things-worth-reading-24th-february-2015 <![CDATA[Things worth reading: 24th February 2015]]>

Things we're reading today include ...


]]> 11467957 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467950/sri-lanka-holds-rates-sees-comfortably-low-inflation Tue, 24 Feb 2015 04:03:03 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467950/sri-lanka-holds-rates-sees-comfortably-low-inflation <![CDATA[Sri Lanka holds rates, sees "comfortably" low inflation]]>    Sri Lanka's central bank maintained its key policy rates, as expected, saying inflation was expected to continue to remain "comfortably low in 2015."
    The Central Bank of Sri Lanka, which has kept rates steady since October 2013, issued the following statement:

    "Year-on-year (y-o-y) headline inflation increased to 3.2 per cent in January 2015 from 2.1 per cent in December 2014 while annual average inflation declined marginally to 3.2 per cent from 3.3 per cent recorded in the previous month. The increase in inflation in January is attributed to higher food prices, which have now broadly stabilised. The impact of the recent downward price revisions of domestic petroleum prices as well as of essential consumer items would be reflected in official price indices from February, which would result in a considerable downward shift in inflation in the period ahead. Accordingly, it is expected that inflation, which has registered single digit rates in the post-conflict period, will continue to remain comfortably low in 2015.

In December 2014, credit extended to the private sector by commercial banks grew by 8.8 per cent on a y-o-y basis, maintaining its upward trend since August 2014. In absolute terms, credit obtained by the private sector recorded a historic high of Rs. 76.5 billion during the month of December, resulting in a cumulative increase in private sector credit of Rs. 223.9 billion during 2014. The sector-wise classification of credit growth indicates increased credit disbursements to the Industry and Services sectors in the latter half of 2014, which augurs well for economic growth prospects. With low nominal interest rates and improving business confidence, it is expected that credit extended to the private sector would grow at a healthy pace in 2015. During the year 2014, net credit to the government (NCG) from the banking sector increased by Rs. 134.6 billion while credit to public corporations increased by Rs. 80.9 billion. Broad money (M2b) recorded a y-o-y growth of 13.4 per cent by December 2014 compared to the projected broad money growth of 13.5 per cent for the year. Broad money growth averaged 13.3 per cent during 2014.
On the external front, the Sri Lankan rupee depreciated against the US dollar by 1.4 per cent by 20 February 2015 year-to-date, mainly due to higher import demand. With this seasonal demand gradually easing and the realisation of the anticipated foreign investment inflows, it is expected that the external sector would show greater resilience during the remainder of the year.
Taking the above factors into consideration, the Monetary Board at its meeting held on 23 February 2015, decided to maintain policy interest rates of the Central Bank unchanged at their current levels. Accordingly, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank would remain at 6.50 per cent and 8.00 per cent, respectively. Access to the Standing Deposit Facility (SDF) will remain rationalised.
The date for the release of the next regular statement on monetary policy would be announced in due course."


http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467926/central-bank-news-link-list-feb-23-2015-denmark-dismisses-report-it-could-consider-capital-controls Mon, 23 Feb 2015 20:13:03 +0000 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11467926/central-bank-news-link-list-feb-23-2015-denmark-dismisses-report-it-could-consider-capital-controls <![CDATA[Central Bank News Link List - Feb 23, 2015: Denmark dismisses report it could consider capital controls]]>
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.