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Climate risks still underplayed in credit ratings – ECB blog
Sovereign bonds, utilities and automotive and insurance sector securities most impacted by climate
Reform UK’s BoE plans dismissed as ‘Trump-lite’
Former Bank of England officials unconvinced by proposals to fire current governor, change MPC and add growth remit
Tariffs not increasing activity or jobs in US manufacturing – study
Labour supply constraints and increased input costs are holding sector back, say Fed researchers
Ex-BoT governor warns against EMs overusing policy space
Gap exists between expectations and what central banks can achieve in terms of growth, says Sethaput
Bundesbank following US instability ‘very closely’ – Nagel
Central bank president says AI and geopolitics pose risks to financial stability
Ex-governor says Fed should use Treasury derivatives in crisis
Doing so could split response from monetary policy and hedge interest rate risks, argues Jeremy Stein
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
Czech Republic, Moldova and Norway hold rates
CNB says services inflation is still high, Moldova is recovering and Norway says it is in no hurry
Bailey switches sides as BoE holds at 4% in 5–4 decision
Members’ views, published for first time, show disagreement around staff’s central projection
Carney to direct BoC to administer open banking and stablecoins
PM’s first budget plan includes funding allocation for central bank to administer relevant legislation
ECB to tilt future QE to shorter-term bonds – Schnabel
Collateralised lending to play key role in Eurosystem asset composition
Banks grapple with Fed’s double deadline on stress-test plans
Supervisor consulting simultaneously on next year’s test scenario and broader model changes
Brazil holds policy at 15% for third time in a row
BCB continues to signal hawkishness despite calls from finance minister to cut rates
Monetary Policy Benchmarks 2025 report – risk-based policy
Benchmarks highlight main risks and how central banks analyse them, as balance sheets normalise
Poland cuts rates, while Albania and Sweden hold
Riksbank warns of US stock market bubble
HKMA-BCB trade finance link could be gamechanger, says expert
CBDC blockchain experiment has potential to boost global commerce, UN adviser tells Central Banking
Bolivia raises $83m in bonds linked to gold prices
Central bank sells instruments directly to retail investors at above-market rate
Central banks speak opaquely to avoid overreaction – ECB study
Authors say institutions tend to communicate more clearly when they know their reputations are low
Cook: US labour market solid, inflation to remain elevated
Governor differs from fellow members of Fed board in first speech since Trump’s attempted dismissal
Japanese PM says BoJ ‘halfway’ to achieving sustainable growth
Central bank says it does not comment on prime ministers’ statements
Rethinking policy transmission in the age of AI
Managing machine expectations will require analytical innovation and potentially new forms of oversight, argues Elisa Vilorio de Painter
AI models ‘know more than they say’ – BoE paper
Tapping into ‘hidden states’ of large language models can improve data processing, authors claim
Posen predicts Supreme Court will side with Cook
However, PIIE president tells panel that justices are still likely to undermine Fed independence
Emerging market central banks should be hawkish – NBER paper
Stronger reactions to inflation surges help to build institutions’ reputations, researchers argue
Is independence compatible with climate action?
Lessons from China indicate relationship between governments and central banks may need to change, argues Mathias Larsen
Firms slow to adjust investment targets for inflation – BoJ study
Discount rates are sticky and do not rise with expected increases in price levels, research finds
RBA holds policy as inflation rises
Australian central bank’s inflation forecast assumes one further rate cut in easing cycle
Stablecoins should be tightly regulated – HSBC exec
John O’Neill says lender’s views on the assets are aligned with those of central banks
South Sudan opens new currency centre as UN warns of looming war
Efforts to decentralise ops come after General Assembly hears that political transition is ‘falling apart’
Fed accepts wealth redistribution at top, says ex-Kansas City chief
Hoenig calls for new accord with Treasury, as fellow former governors defend Fed independence
FATF delisting of African nations a transactional move, says analyst
Organisation rejects suggestion that political factors were behind countries being taken off ‘grey list’
Researchers revisit 20-year forecast for global monetary system
Eichengreen and Razo-Garcia predict further move towards polarised exchange rate regimes
Montenegro to give out €2,000 for each baby born this week
‘Savings week’ sees central bank team up with lenders to offer parents financial rewards
New Zealand banks can withstand geopolitical shocks, says RBNZ
Latest stress test monitors impact of recession and liquidity crisis triggered by potential global events
Stress-test transparency: how much is too much?
The transparency drive to disclose bank stress-test results comes with costs
Schlegel: Liechtenstein is on its own for financial stability
SNB governor says principality’s lenders are not entitled to bank’s emergency liquidity facilities
AWS outage barely affected Europe’s central banks
Monetary authorities say robust risk mitigation frameworks helped them to largely avoid fallout
Stablecoins to trigger rise in demand for Treasuries – study
Authors say sector’s growth could take demand from around $300bn today to $2trn by 2030
Asia-Pacific central banks list geopolitics, AI among key challenges
EMEAP, representing monetary authorities from across region, commits to strengthening co-operation
Taiwan’s central bank seeks oversight over stablecoin issuance
Deputy governor says potentially volatile assets could affect financial stability
Working group minutes: central banks face balance sheet challenges
Some institutions are struggling to absorb large amounts of excess liquidity
People: Estonia selects new governor-designate
Plus senior promotions in Hong Kong, India and Sri Lanka
ECB holds rates for third consecutive time
Lagarde celebrates ‘fading risks’ to eurozone growth thanks to trade deals and Gaza ceasefire
ECB enters new phase for digital euro, with issuance set for 2029
CBDC’s next phase to focus on technical readiness, market engagement and legislative support
Why Europe cannot afford to delay the digital euro
CBDC would counter the erosion of sovereignty as cash recedes, substitution by foreign digital monies and weaponisation of access, argue Biagio Bossone and Céu Pereira
Swiss price controls do not depress inflation – SNB paper
CPI metric would ‘not have greatly differed’ had it excluded price-controlled goods, study finds
Japan holds rates, as expected, with two dissenting votes
BoJ governor says there is no ‘preset idea’ on future rate rises after dissenters call for 25bp hike
RBNZ governor says operational independence is crucial
Hawkesby says central bankers globally are worried attacks on independence will be normalised
Changing balance sheet composition mostly reflects normalisation
Gold buying and FX interventions drive changes in some jurisdictions
Fed cuts rates with dissenting votes in both directions
Risks to employment and prices split FOMC three ways
