Europe
Over half of central banks employ strategic progress monitoring tools
Just a quarter of jurisdictions evaluate success with external means
Albania, Norway, Sweden hold rates, Poland cuts by 50bp
Falling food and energy prices amid high trade uncertainty prompt cautious approaches
Central banks rate strategic plan visibility and authority highest
Resourcing tends to be somewhat more challenging across jurisdictions
ECB launches digital euro ‘innovation platform’
Bank garners around 70 private “pioneers” and “visionaries” to discuss CBDC
Third of central banks link staff remuneration to strategic plan
Strategic planners are paid $40,000 on average per year
Eurozone exports to US unlikely to rise in trade war – ECB study
US tariffs rerouted Chinese goods to eurozone, but exporters there failed to boost US presence
Almost half of eurozone ready to stop buying US goods – ECB study
Tariffs have triggered significant animosity among consumers, research finds
Pension funds hesitate over BoE’s buy-side repo facility
Reduced leveraged and documentation ‘faff’ curb appetite for central bank’s gilt liquidity lifeline
Strategic plans widely integrated into staff annual reviews
Staffing averages just under five persons in strategic planning units
US Basel equivalence questioned as EU patience wears thin
MEPs say unfaithful US implementation of Basel III could trigger review of access to EU markets
ECB removes need for governing council to approve CCP facility
New “automatic” facility will require safeguards that are “still being implemented”, bank says
Working group minutes: refining forecast models
Central bank economists discuss challenges of tackling errors and integrating new model features
Stress tests stronger in EU than in US – BdF research
Lenders remain well capitalised in both regions but European banks are more resilient, study finds
SNB introduces new liquidity provision framework
Reformed facility will be less “emergency” in nature and accept broader pool of collateral
Governing boards approve majority of strategic plans
Departmental heads widely assigned implementation duties
BoE plans to link system-wide and individual stress tests
Meanwhile, ECB wants to broaden system-wide stress models to include central counterparties
Six in 10 at ECB do not trust Lagarde – staff union survey
Survey shows frustration at career progression, employment uncertainty and HR over past decade
Regulation should be ‘smarter’, not ‘less’ – ECB’s Donnery
Financial resilience cannot be sacrificed under banner of simplification, senior supervisor says
Three in four central banks use dedicated strategic units
Units typically have a direct reporting line to the governor
Eurozone fiscal policies grew real GDP, dampened inflation – ECB
However, Covid-era policies led to higher deficits and debt in years following pandemic, research finds
Events are top channel for strategic plan communication
But over half of plans lack a framework for communication
BIS, ECB, BoE develop synchronised cross-border FX transactions
BIS says Project Meridian FX reduces liquidity, credit and settlement risk
Digital transformation and payments are major strategic goals
But few respondents prioritise AI or mandate changes
Knot becomes ‘cautious believer’ in euro internationalisation
DNB chief says EU’s institutions must be robust and its finances sustainable if it’s to attract investors