South African Reserve Bank Economic Notes are concise analyses crafted for internal discussion and to foster debate. These notes are authored by staff members of the South African Reserve Bank or visiting fellows and are occasionally made available to the public.
The deliberations of the Bank of Canada's Governing Council have resulted in a fixed announcement date for the monetary policy decision on April 10, 2024. The Council, led by Governor Tiff Macklem, engaged in discussions surrounding the global and Canadian economies, as well as inflation outlooks.In analyzing the international economy, the Council noted projections of stronger growth in the US and gradual improvements in the euro area, while acknowledging challenges faced by China's economy. Governor Macklem and other members highlighted the risk of stronger US GDP growth...
The South African Reserve Bank's (SARB) Monetary Policy Committee announced a shift in its preferred inflation target in July 2017. Before the third quarter of 2017, the committee maintained an inflation targeting range of 3–6%. However, from that point onward, the focus shifted to the midpoint of this range, setting 4.5% as the preferred target.
The Reserve Bank of Australia (RBA) has recently released a report focusing on the advantages and obstacles of connecting fast payment systems internationally for cross-border payments. According to the report, linking these systems has the potential to enhance the speed and transparency of cross-border transactions, benefiting both users and service providers.The report emphasizes the significance of well-designed governance, scheme rules, and payment processing capabilities in managing risks and ensuring a smooth cross-border payments experience. However, challenges...
The latest Composite Business Cycle Indicators report for April 2024 has been released. According to the data, there are no significant changes from previous months.
Board Member NOGUCHI delivered a speech in Saga on April 18, 2024, focusing on economic activity, prices, and monetary policy in Japan.In the speech, NOGUCHI stated, "The current economic conditions require careful monitoring and assessment to ensure stability and growth."According to the Bank of Japan, the full text of NOGUCHI's speech is now available for review.
The Monetary Policy Review for April 2024 has been released. The document outlines the current economic conditions and the measures being taken to address them.
The U.S. Department of the Treasury has announced a proposed directive regarding Form BA 400, aimed at enhancing transparency and efficiency in financial reporting. This proposal seeks to update the current regulations governing the submission of this form.
In 2013, South Africa aligned its bank regulatory framework with the Basel III accord. This move introduced capital and liquidity adequacy requirements to manage the financial cycle through macroprudential policy. The regulations aim to enhance banking system resilience but may also alter lending behaviors, impacting loan availability and terms for specific credit market segments. This issue is particularly relevant in emerging markets like South Africa, where market segmentation and inequality are pronounced.
The South African Reserve Bank (SARB) has announced a proposed guidance note on Form BA 400. The aim is to enhance the accuracy and reliability of data reported by banks.
Results from the Market Participants Survey for the first quarter of 2024, conducted from March 7 to 15, 2024, have been released, providing insights into the economic outlook for Canada. The survey, based on questionnaire responses from approximately 30 financial market participants, revealed various forecasts and probabilities regarding GDP growth, inflation, monetary policy, and financial assets.According to the survey, respondents provided their forecasts for real GDP growth in Canada. The median forecast for the end of 2024 is 1.0%, with a 25th percentile forecast of...
The Australian Prudential Regulation Authority (APRA) has issued a proposed guidance note on bank capital adequacy. The guidance, identified as BA410 and BA420, aims to provide clarity on the application of prudential standards for banks in Australia.
The March 2024 Consumer Price Index (CPI) summary released by the U.S. Bureau of Labor Statistics (BLS) highlighted a 22.2% increase in car insurance rates over the past year, marking it as a notable increase within the overall inflationary pressures.
The South African Reserve Bank (SARB) has published the Digital Payments Roadmap. This roadmap aims to achieve the goals and strategies outlined in the National Payment System Framework and Strategy: Vision 2025. The objectives include promoting competition and innovation, ensuring cost-effectiveness, enhancing interoperability, and advancing financial inclusion.
The House Financial Services Committee, under the leadership of Chairman Patrick McHenry, has advanced 13 pieces of legislation to the full House for consideration. Among these measures are Congressional Review Act (CRA) resolutions aimed at addressing regulatory oversteps and promoting financial innovation.One of the bills, H.R. 5535, known as the “Insurance Data Protection Act,” presented by Rep. Scott Fitzgerald, focuses on limiting the ability of certain offices to subpoena data directly from insurance companies. Instead, the bill advocates for collaborative efforts...
The U.S. House of Representatives has passed Representative Young Kim’s (CA-40) H.R. 6323, the Iran Counterterrorism Act of 2023. The bill requires Iran to cease support for acts of international terrorism as a condition for the President to waive secondary sanctions imposed on the regime in Tehran. It also establishes a congressional review process for national security interest waivers of these sanctions if Iran continues its support for global terror.Chairman McHenry (NC-10) expressed his support for the bill, stating, “Hamas’s terrorist strike last October on innocent...
In a recent session, Chairman McHenry delivered remarks at the markup of regulatory oversight legislation by the House Financial Services Committee. The Committee discussed various measures aimed at nullifying regulatory oversteps, promoting innovation, and correcting existing law provisions.Chairman McHenry welcomed participants to the markup, stating, "Good morning, everyone. Welcome back to another Financial Services Committee markup." He emphasized the importance of the day's agenda by mentioning, "Today we will consider several regulatory oversight measures. This...
The European Commission has proposed a directive aimed at establishing minimum regulatory requirements for mutual banks concerning covered deposits. The directive is part of a broader effort to enhance the stability and resilience of the banking sector within the European Union.
The European Banking Authority (EBA) has announced the launch of a public consultation on its draft Guidelines regarding minimum regulatory requirements relating to covered deposits. This initiative is part of the EBA's ongoing efforts to ensure harmonization across the EU in the application of these requirements.