Europe
Fed needs more evidence to cut rates – Powell
Lagarde tells same Sintra panel that services inflation is making disinflation “bumpy”
Eurozone ‘soft landing’ still not guaranteed, warns Lagarde
ECB president says costs of disinflation are contained better than in the past
Briefing, analysis and research are monetary policy officials’ top duties
Average departmental staff remains below 40 persons
Build up CCyB gradually over financial cycle, says ECB paper
Even partially built-up buffers help during a shock, researchers argue
Over 25% of central banks pre-brief government on policy decisions
Briefing patterns differ across institutions, as two central banks start practice
Digital euro ‘may require’ battery-powered cards for offline use
Eurosystem could develop its own app to manage digital euro accounts
European Commission opens consultation on AI in finance
As AI use in financial services increases, regulators must balance innovation with risk
ECB paper presents new measure of bank performance
“Bank edge” compares individual banks’ book returns to benchmark portfolio
Attention shifts to US, UK after European Union postpones FRTB
Global timeline still unclear, with banks hoping lawmakers will use delay to soften rules
Book notes: The wealth of a nation, by Geoffrey Hodgson
This book provides a deep dive into the economic and institutional transformations that supported the rise of English capitalism
BIS and BoE launch project to simplify FX transactions
Project Meridian FX seeks to link RTGS and DLT systems
Central banks continue climate action despite political pressure
Reserve managers are expanding green investments, as some incorporate “double materiality”
Remittance fees unregulated in most jurisdictions despite high costs
But central banks identify opportunities in cross border payments integration
Banks are main instant payments participants
Email address is central banks’ least-used payment channel
Supervisors must embrace technology – ECB’s McCaul
Data is “growing exponentially”, so supervisors must innovate to track risks, supervisory board member says, as SSM digitalisation enters ‘phase 2’
Central bankers warn of US election risks
Danger of tariffs and supply chain disruptions, Central Banking Summer Meetings hear
Two in five RTGS systems experienced outage last year
Majority of central banks plan technology upgrade within a year
ECB penalises European banks for not meeting climate risk deadline
European real estate market remains a concern but banks are in a “robust” position, Jochnick says
Around two-fifths of central banks planning instant payments
Central banks processed instant transactions with average value of over $124 billion in 2023
ECB appoints three senior officials to supervisory board
Irish, French and Portuguese trio to replace current members by the end of the year
Majority of central banks increased payment system budget in 2023
Nearly half of central banks say resourcing is not sufficient
ECB cuts policy rate by 25 basis points
Strong eurozone wage growth rules out commitment to further cuts, says governing council
Average cost of running RTGS systems is $1.8 million
Annual costs slightly higher than last year’s benchmark
Most RTGS systems operate between seven and 12 hours daily
More than 40 institutions on average have direct access to infrastructure