Central Banks
Supply curves may be convex – ECB paper
Findings imply that Phillips curve is convex and fiscal policy is state-dependent, authors say
ECB leaves policy unchanged
Lagarde says she will not comment on euro’s exchange rate against the dollar
People: UK regulators appoint new complaints commissioner
Central banks in Madagascar and Barbados get new board members
CFTC report calls for US regulators to take urgent climate action
US should join NGFS, impose carbon price and mandate firms to disclose green risks, report says
Central banks are using biased estimates of pass-through – BIS paper
Standard measures exchange rate pass-through fail to account for market power, researcher argues
BoE’s Stheeman sets out expectations on cyber resilience
Policy-makers will be guided by cyber stress-testing and “impact tolerances”
Euro failing to challenge US dollar in global reserves – CBI Benchmarks data
Among non-European central banks euro sovereign debt accounts for just 4.1% of reserves; negative rates act as a major barrier, say reserve managers
Central Bank of Brazil launches climate change agenda
Proposals include creation of sustainable liquidity facility and adding climate factors to reserves management
Modellers should not exclude pandemic-era data – ECB paper
Excluding pandemic data from time series would “vastly underestimate uncertainty”, authors argue
MAS ‘front-loads’ interest rate benchmark reform effort
Central bank says not transitioning to new Sora rate will expose banking sector to increased risk
Central Banking’s strategic changes for a new era
New institute, benchmarks, virtual training and online event weeks launched
Asia tops rankings for reserves coverage ratios
Asia leads across three main metrics, but the region may be moderating its holdings
Europe leads on reserve manager salaries
Central banks pay a wide range of salaries to their reserve managers
Many Paris Agreement signatories do not use ESG screens
Most reserve managers fail to take environmental factors into account for FX portfolios
Emerging markets act as standard bearers for tranching
Nearly two-thirds of reserve managers tranche; largest allocations made to investment tranche
Lower-income nations invest more with external managers
Third-party institutions offer staff training and new asset class investments
Collateral posting spreads among swaps users
Following the Bank of England’s example, most derivatives users now have two-way CSAs
Some large reserve managers eschew liquidity stress tests
Majority of central banks test for thin trading, but three in 10 larger managers do not
Ukraine replaces deputy governor as more senior officials leave
Latest change at central bank comes as donors watch closely for signs of interference
RBI unveils debt restructuring plan
Aim is to save viable businesses while letting hopeless cases fail
Deep learning can beat other forecast methods – Bank of Korea research
Deep learning models have smaller margin of error than conventional methods, research finds, but data quality is key