Monetary operations: Tools and techniques for policy implementation

TBC
Virtual
1 day

About the course

How are central banks preparing and adapting their monetary operations framework in times of uncertainty shaped by geoeconomic stress, market volatility and new and evolving global risks?
How are monetary policy and operational decision-making being influenced by rising commodity prices, supply chain disruptions and labour market pressures?
How are tokenization, digital assets and new emerging financial innovations transforming monetary operations, liquidity management and collateral frameworks and what are their challenges?
How is AI being used to improve forecasting, market intelligence and operational efficient, while introducing challenges around model risk, transparency, governance and interpretability?
In an increasing inter-connected financial system, shared global and bi-lateral relationships can lead to shared disruptions. How are central banks managing cross-order risks and safeguarding monetary and financial stability?

These are some of the main challenges facing those working in monetary operations in 2026. The key to uncertain markets in times like this is to manage expectations: internally and externally, among markets and stakeholders and streamline internal operations. Yet the fast-paced nature of financial markets renders this communication far from straightforward. This course is designed to equip central bankers to meet these challenges.

Agenda

Monetary policy in 2026: leaning against or with the wind?

Assessment of dilemmas, conflicts and trade-offs between monetary operations and the financial stability mandate
Implications for central banks’ independence and accountability
Overview of key factors and dynamics that will shape the framework for monetary policy operations in the years to come

US inflation and spillovers to other countries

Recent developments on US inflation
What is an appropriate measure of core inflation?
Higher inflation in the core countries and tighter monetary policy could have spillovers to other economies
How to measure spillovers? Could macroeconomic policies in the core have microeconomic implications?

Digital assets, tokenization and emerging financial innovations: implications for monetary policy, central banks and central banking

Taxonomy of digital assets (stablecoins, bitcoins and crypto assets)
The next phase of CBDC implementation: impact and implications of CBDCs for markets and portfolios
The role of tokenization: unlocking efficiency gains and smoother financial intermediation, while addressing transmission risks and challenges to already existing robust frameworks
Group Discussion: How should central bankers adapt their monetary operation frameworks for the new wave of financial innovations?

The new toolkit for optimising monetary policy operations

Evolution of approaches for managing domestic liquidity and monetary policy operations
Frameworks for tackling challenges at both strategic and day-to-day level
Key features of the modern monetary operations toolkit
Case study: monetary operations framework at the European Central Bank

Liquidity management in different regimes

Liquidity management and exchange rate regime: different means and different goals
Corridor vs. floor systems: implications for liquidity management and forecasting
Market volatility and the regulatory demand for liquidity
Liquidity forecasting tools and techniques

International monetary policy spillovers and responses

Examples of monetary policy spillovers from advanced to emerging market economies
Overview of measures taken in emerging markets in response to these effects
Spillover implications of the Fed monetary policy tightening
Discussion: how do monetary policy spillovers get tackled in the participants’ home jurisdictions?

The balancing act of maintaining policy solvency

The concept of “solvency” for central banks
Consequences of financial weakness
Distribution mechanisms and recapitalisation
Assessing capital adequacy – a forward looking approach

What next for central bank balance sheets?

Quantitative easing: a remedy for liquidity problems
Benefits and drawbacks of the shift to a floor system of money market operations
Key components of quantitative easing as a generalised expansionary policy
Discussion: the future of central bank balance sheets and money market operations

What (not) to say to markets, when and how?

The role of communication with markets in monetary policy design and implementation
Forward guidance as a policy tool
Examples of frameworks and processes ensuring that central banks’ messages are consistent and context-sensitive
Practical examples: how to communicate in time of market stress or volatility