Central Banks
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
BoJ conducts FX rate check amid falling yen
Analysts question whether FX intervention is feasible without monetary policy shift
Over 18% of central banks adopted new reserves assets last year
Middle income jurisdictions led the trend, 28.6% diversified their asset allocation
Liechtenstein judge confirms he is investigating Lebanese governor
Salameh is now subject of several judicial probes as central bank ends petrol subsidies
Fed’s QT will be more complex this time, official says
Overnight repurchase liabilities make up a larger portion of balance sheet than before
US CPI inflation falls modestly
New York Fed reports “steep declines” in inflation expectations, but core CPI ticks up
Managing risk with ETFs
Central Banking speaks to eight reserve managers about their thoughts on the use of ETFs, faced with market volatility, uncertainty and escalating inflation
Fed’s Waller: rates could go ‘well above’ 4%
Governor projects “significant” September hike and says it is “too early” to judge inflation drop
Hong Kong leader eyes financial summit success amid Singapore rivalry
Hong Kong struggles to balance Covid measures with desire to affirm itself as a top financial hub
Emerging markets central banks maintain lead in portfolio tranching
European institutions are less likely to implement this strategy