Central Banks
US needs tighter policy, former senior Fed adviser says
Higher rates will cause little damage to supply chains, David Wilcox argues
Social media: an essential tool for central bank communication
Strategies to secure popularity, comprehensibility and reputation as new media takes centre stage
Russian central bank cuts rates again but Nabiullina warns over deficit
Higher structural deficits would force central bank to raise rates, governor says
Norges Bank, Riksbank and SNB expected to raise rates
High inflation and ECB tighter policy stance put pressure on eurozone’s neighbours
Argentina continues rate rises
Central bank increases headline rate by 550bp to 75%, but inflation continues to rise
Paraguayan ex-governor objects to central bank board nominee
Union claims appointment of finance ministry official would damage independence
Boards remain key body in benchmarking approval
In almost 60% of central banks the board makes final decision, investment committee in 29%
Old people hit hardest by inflation, research finds
Authors find income effects and “Fisher channel” have the biggest impact on Spanish households
ETFs in reserve management focus report 2022
Exchange traded funds (ETFs) have risen in popularity among investors and may be of interest to central bank reserve managers in pursuit of safety, liquidity and returns. Central bank mandates vary, but all reserve managers must navigate a new, complex…
Navigating a new, complex economic environment
In 2021, net assets in exchange-traded funds (ETFs) stood at almost $10 trillion, after inflows of more than $1 trillion
Economy’s ‘first responders’ now in the line of fire
Forceful but late interventions to combat inflation raise the risk of central bank overreactions
ECB could bring rates close to 2% by year’s end, says French governor
François Villeroy de Galhau estimates eurozone’s neutral rate is below or near 2%
West Africa central bank orders second rate rise of 2022
MPC says drought, unrest and global commodities shocks are driving up inflation
More central banks engage in gold lending and swaps
Securities lending is more common among central banks from high income jurisdictions
US may release frozen Afghan central bank funds – report
Plan would transfer up to $3.5 billion to the BIS under third-party supervision, source claims
IMF paper explores second-round effects of oil shocks
Authors find oil shocks have greater impact where inflation is already high
Costa Rica continues tightening with 100bp increase
Central bank cites concerns about rising inflation expectations and second-round effects
PBoC holds key interest rate unchanged
State council defers some firms’ tax payments and says it will increase support measures
More reserve managers use ETFs
Debate around how investor and ETF behaviour interact during times of market stress continues
Summers and Krugman see no alternative to ECB tightening
Despite lack of overheating, huge energy shock requires action to anchor inflation expectations
Irish central bank will still exchange old banknotes and coins
Authorities take opportunity to remind public that UK paper £20s and £50s are expiring
CBDCs require increase in cyber security budget – BIS survey
Central bankers deem financial sector underprepared for cyber attacks
UK inflation dips below 10%
Lower fuel costs bring down headline figure, but underlying inflation remains strong