Central Banks
ECB tweaks collateral framework, ‘paves way’ for DLT-based assets
Bank clarifies ‘climate factor’ in securities pricing, introduces haircuts on sterling, dollar and yen assets
People: President’s nephew confirmed as BI deputy governor
Plus new governor in Malawi and Croatia’s vice-governor to become minister
Uruguay slashes rates by 100bp to 6.5%
Peso gains against dollar as central bank tweaks meeting schedule to allow ‘necessary flexibility’
AI could amplify financial stability risks – BIS’s Zhang
Technology may increase speed and intensity of how stress propagates through system, says official
BoJ rejects opposition’s call for faster ETF selloff
Bank says matter ‘fully addressed’ last year, after lawmaker proposes speedier sale to fund tax cut
Life insurers increasingly exposed to systemic risk – BoE paper
Authors say European firms’ ‘non-traditional activities’ may call for new regulation
IMF overcalculated Taiwan’s USD exposure – central bank chief
Fund’s measure showing USD holdings at 45 times local FX markets is “misunderstanding”, Yang says
BoE’s new forecast evaluation unpacks causes of errors
Global shocks and wage growth led bank to underestimate inflation persistence
EU should ‘roll up its sleeves’ against China and US – BdF head
Villeroy de Galhau says Europe has ‘many cards to play’ in geopolitical game
China could trigger Treasuries selloff to punish US – paper
Beijing might sustain short-term self-harm to undermine US assets’ safe haven reputation, authors say
BIS study finds no long-term decline of global dollar use
Reports of euro’s demise are also greatly exaggerated, researchers say
HKMA to double renminbi funding quota
Measure comes as Hong Kong announces collaboration with mainland over city’s gold trading system
AI and tokenised finance are reshaping financial trust
Amro’s CEO Yasuto Watanabe argues that sustained policy attention is needed to ensure the foundation of trust remains resilient amid financial transformation
ECB and ESRB warn of financial stability risk from geopolitics
New model takes prediction data to show US domestic politics affecting eurozone financial markets
BoE’s Greene: impact of Fed easing on UK remains unclear
Spillovers via trade channel could push domestic inflation up or down, MPC member says
Trade liberalisation with China increased US wages – study
Fed researchers find ‘long-suspected’ benefits for labour market
BoJ holds rates as politics and sovereign bonds take spotlight
Decision closes out week in which JGB yields rose to historic highs after PM called snap election
Book notes: 1929: the inside story, by Andrew Ross Sorkin
A compelling narrative offering fresh perspectives on the key characters, events and implications of the great crash
Derivatives hedging can weaken effect of capital rules – BIS paper
Banks increase use of credit default swaps when counter-cyclical buffers rise, study finds
Paper calls for ’systematic monitoring’ of cyber risks
Non-financial firms’ credit risk indicators not accounting for ‘sharp increase’ in incidents, say authors
Geopolitics a key focus for ECB supervisors – blog
European banks have fared well so far against shocks but must stay vigilant, senior officials write
BoK debuts bespoke AI for central bank use
Technology trained on Korean language inputs will aid research and compliance, Bank of Korea says
BNM holds policy and points to positive economic outlook
Malaysian central bank keeps rates at 2.75% and expects domestic growth momentum to continue
Supreme Court appears sympathetic to Cook
Conservative judges lament the way governor’s removal was handled and risks to Fed independence