Central Banks
Furlough uncertainty delayed BoE rate hike – Bailey
Roughly a million people were still using the job protection scheme when it ended, governor says
BIS statistics: OTC derivatives market value back to 2019 levels
Gross market values have fallen about a fifth since second half of 2020
Peru central bank raises rates again
Fourth hike since August “does not necessarily imply a cycle of successive increases”
Uruguayan central bank orders third consecutive rate hike
Central bank expresses concern over salary rises and regional uncertainty
Fed and ECB officials point to different policy directions
US officials see a rate hike in 2022 as increasingly likely, while eurozone governors rule that out
UK and China renew bilateral swap line
350 billion yuan swap line extended for a further five years
Bank of Mexico proceeds with gradual tightening process
Central bank increases interest rate by 25 basis points to 5% on higher inflation
‘Bullwhip effects’ worsening supply problems – BIS bulletin
Direct inflationary impact likely to be limited, but “sustained pressures” are possible, economists say
Asean publishes first green taxonomy for financial instruments
“Multi-tier” taxonomy aims to create realistic goals for both rich and middle-income nations
People: Georgieva nominates new IMF deputy managing director
BoE’s PRA names new executive directors; Dallas Fed renews terms for two board members
Central bank currency department costs on the rise
Majority of central banks’ budgets have also increased over the past five years
Brazilian governor outlines climate reporting rules
Campos Neto says Brazil’s banks must file climate risk reports from June 2023
US records highest CPI inflation rise since 1990
NY Fed detects slight rise in short-term consumer inflation expectations as real wages fall
Higher-denomination banknotes have longer lifespans
Median correlation was 0.9 across 22 central banks
New York Fed opens new research centre
Marco Del Negro will lead work on research methods and issues in macroeconomics
GDP-linked bonds unlikely to ‘tame debt’ – BdF paper
Linking sovereign bonds to GDP would not necessarily improve debt ratios, researchers find
MAS and BSP to pursue retail payment linkage
Central banks of Singapore and the Philippines promise to advance co-operation on fintech
EU should demand banks set climate transition plans – Elderson
Officials acknowledge climate risk has become central topic, but say most institutions fail to meet supervisory requirements
Banknote demand forecast to rise in 2022
Median forecast percentage change was 7.6%, but ranged from -59% to 17%
BoE outlines new ‘tiered’ CCP supervision framework
Non-UK CCPs will be labelled Tier 1 and Tier 2 following ‘reliance assessment’
ESG reserves adoption challenged by reliance on sovereign bonds
Higher issuance of government-compliant bonds is insufficient to offer investable alternatives to central banks.
Romania continues monetary tightening
Central bank lifts interest rates by 25 basis points as inflation continues to bite
Lane makes case that inflation surge is transitory
ECB chief economist stresses weak mid-term inflation dynamics in the eurozone
Fed warns of China debt risks
Financial Stability Report mainly optimistic about systemic health, including housing market