Chile
Trigger for emerging market sell-off still playing out, warns Argentine governor
There is a possibility of Argentina being “challenged further”, says Sturzenegger
Chilean deputy points to US inflation as biggest risk
US growth is broadly positive, but sustained wage growth could drive up rates causing sharp portfolio outflows from emerging markets; Chile relatively well positioned
Federico Sturzenegger on Argentina’s efforts to create a credible central bank
The Central Bank of Argentina governor, in his last interview before leaving office, speaks about panic in emerging markets, the IMF bailout, and bringing to an end high inflation and monetary financing
People: new Indonesian governor confirmed
Perry Warjiyo and new deputy approved in Indonesia; Richard Clarida mooted for Fed vice-chair; Central Bank of Chile appoints new deputy governor
Latin American markets were hit by 2010 US ‘flash crash’, DNB paper finds
Fall was driven by equities markets’ interdependence, not contagion, researcher argues
Venezuela pays off $2.1 million debt to Chile
Struggling Latin American country honours debt repayments under Reciprocal Payments and Credit Agreement, after missing payment in 2017
Core-periphery model of bank networks called into question
Researchers find multiple cores in the interbank market, posing different systemic risks
Widening exchange rate band is not a top priority – PBoC’s Zhou
Zhou makes first public confirmation he is set to retire soon; warns the country’s excessive optimism could lead to a “Minsky moment”
Chile puts board members in spotlight with decision-making overhaul
Changes aim to make communication more transparent while aligning central bank with international best practice; eight meetings will now take place each year
Digital currencies could transform the role of central banks – Chilean governor
Marcel is wary of developments with CBDCs, but believes they are still a long way off; he urges central banks to keep pace with fintech innovation
Chile’s economy on sound and stable footing – report
Following earlier action in the year, central bank is unlikely to move interest rates again; growth forecasts revised following copper mine strike
BIS paper says macro-pru is better when partnered with monetary policy
Macro-pru does not work as well when it acts as a substitute for monetary policy when dampening credit cycles; when deployed as the main instrument, policies prove very successful even in the short term
Deterioration in labour market not yet hitting unemployment – Chile’s Marcel
Chilean governor says self-employment has acted as a “significant buffer” as employment declined; unemployment not yet being affected thanks to “flexibility” of market, governor says
People: uncertainty over Tetangco’s future; Minneapolis Fed appoints new COO and head of research
Future of Philippines governor unclear; Minneapolis Fed poaches Chicago Fed researcher and appoints COO
FMI transparency needs to improve, Chile deputy says
Central bank leading by example with regard to improved FMI transparency and governance; disclosure framework for central bank’s settlement system to be completed in 2017
Chile notes health of domestic economy has declined
Latest financial stability report highlights the lack of profitability in the banking sector; institutions’ ability to cope with adverse external scenarios has “diminished”
IMF supports Chile move to form financial markets commission
Body will help with better co-ordination and information sharing between the financial sector and central bank; fund says central bank should be ready to cut rates if disinflation appears
Chile’s Vergara to pass torch to Marcel
Mario Marcel is chosen to become the next central bank governor when Vergara’s term ends in December; Marcel has experience at the World Bank, OECD and IDB
Rates likely to stay on hold, says Chilean monetary policy report
Inflation expected to be in the target range by year-end, latest monetary policy report forecasts show; no need for new hikes if economic trends continue
Interest rates to remain flat for longer period of time – Chile minutes
It might be necessary to “postpone” normalisation of monetary policy, latest minutes from Central Bank of Chile show; interest rates to stay at 3.5% for “prolonged period” of time
Chilean central bank changes guidance and keeps policy on hold
Central Bank of Chile removes reference to continued normalisation as inflation returns to target range; holds benchmark rate at 3.5%
Chilean minutes show widespread support for holding policy
Board unanimously votes to hold rates; one member sees tightening cycle ending, while another says lowering rates is “beyond reason”
Financial crises raise transmission of US spillovers to Latin America – paper
Central Bank of Colombia paper shows Brazil is a “net transmitter” of volatility; transmission of spillovers increases in times of political and financial uncertainty
Low income households ‘highly’ vulnerable to changes in interest rates, paper shows
Banks and regulators require the use of ‘richer’ information to understand consumer debt, a Central Bank of Chile paper finds; new model would help evaluate economic policies