Wednesday, November 25, 2015 - 06:00 BBK Stability Review: Low interest rates may spur risk taking 0
By Steven Arons
FRANKFURT (MNI) - Germany's Bundesbank warned Wednesday that a protracted period of low interest rates could encourage investors to take excessive risks, leading to increasing risks in the financial system and potential bubbles.
Publishing its German Financial Stability Review one hour after the ECB's EMU version, the Bundesbank also said that such a build-up of risks could add the additional danger of leading policymakers to delay the return to more normal monetary policies beyond its appropriate due date.
"The longer low interest rates last, the higher the incentives for market participants to take increased risks," Bundesbank Vice President said in the press release.
Wednesday, November 25, 2015 - 05:32 PBOC: RBA In 1st Batch Foreign Central Banks In Onshore FX Mkt 0
BEIJING (MNI) - The People's Bank of China announced the first batch of foreign organizations allowed to trade foreign exchanges in China's onshore market, a move which it said will push forward the opening up of the country's foreign exchange market.
The PBOC said three central banks -- the Hong Kong Monetary Authority, Reserve Bank of Australia and Magyar Nemzeti Bank, the Hungarian central bank,
-- and four international institutions -- the International Bank for
Reconstruction and Development, International Development Association, the World Bank Group (WBG) Trust Fund, and Singapore's GIC -- finished their registration with China Foreign Exchange Trade System on Nov 25 and formally gained...
Wednesday, November 25, 2015 - 05:00 ECB FSR: EMU's China, Emerging Mkt Risks Contained, But Rising 0
By Martin Baccardax
LONDON (MNI) - The European Central Bank said Wednesday that potential global financial market risks had increased in the second half of the year amid weak economic fundamentals and concerns over interest rate normalization in the United States.
In its regular Financial Stability Review, published in Frankfurt, the ECB said that the region's financial sector had thus far remained resilient in the face of market volatility, but noted concerns with respect to the euro area banking system as it continues to struggle with low profitability and rising debt sustainability concerns in both the public and private sector and said the impact of China on financial markets in advanced economies needed close monitoring....
Wednesday, November 25, 2015 - 02:18 TEXT: ECB To Pause QE Buys Over Christmas; Frontload Early Dec 0
By Martin Baccardax
LONDON (MNI) - The following is the full text of a release, published Wednesday by the European Central Bank in Frankfurt, providing details of its Asset Purchase Programme over the Christmas period.
The Eurosystem will temporarily pause APP purchases (PSPP, CBPP3 and ABSPP) between 22 December 2015 and 1 January 2016, inclusive, in anticipation of lower market liquidity during this period and in order to reduce possible market distortions.
Purchases will resume on 4 January 2016.
Wednesday, November 25, 2015 - 01:17 UPDATE2: BOJ Shirai: To Mull Easing If Trend Prices Don't Rise 0
--Recasts With Comments From Briefing
MATSUE, Japan (MNI) - Bank of Japan board member Sayuri Shirai said Wednesday that the BOJ will consider either expanding aggressive easing or using other policy tools if the current large asset purchases fail to guide the underlying inflation higher toward the bank's 2% target.
"If we see there is no room for the underlying trend of prices to improve or detect a worsening of underlying prices, we will consider changing the degree of easing or using other policy tools," Shirai told reporters in Matsue City, western Japan.
One indicator used by the BOJ in recent months to show the underlying trend of prices is improving is CPI minus fresh food and energy...
Tuesday, November 24, 2015 - 21:22 UPDATE: BOJ Shirai: 2% CPI Delayed; Wages, Spending Must Rise 0
--Adds Details From 9th Paragraph
MATSUE, Japan (MNI) - Bank of Japan board member Sayuri Shirai said Wednesday that her outlook for prices is weaker than the baseline scenario presented by the nine-member BOJ policy board after its Oct.