Europe
European Central Bank cuts rates by 25bp
“Undershooting target” becomes real threat as markets’ medium-term inflation expectations fall below 2%
How the rate hike cycle emboldened banks’ deposit modelling
But just because depositors didn’t react quickly doesn’t mean it will never happen
ECB ‘did not approve’ production of €8,000 note
Central bank denies claims by issuing company that souvenir bill was created with its consent
Central banks should collaborate on cross-border CBDCs – Nagel
Bundesbank president talks of “historic opportunity” to improve payments and avoid risk
European banks warming to AT1 – National Bank of Denmark study
Lenders that rely on additional tier 1 capital are less capitalised, says new research
Eurozone policy transmission ‘more pronounced’ in 2022–23 – study
Banks’ increased risk perceptions underpinned swifter pass-through, says Bank of Italy research
Energy price rises have stronger effects than decreases – study
Asymmetric effects of gas and crude oil price rises could lead to tighter monetary policy
Fiscal upside, economic downside to EU deficit procedure – study
Fiscal consolidation sometimes led to restrictive pro-cyclical stances, research finds
ECB will ‘probably’ cut rates in October – BdF governor
Central banks can help fight against political extremism by “restoring trust”, says Villeroy de Galhau
ECB stands firm on fining banks over climate risks
Board member says lenders could pay daily penalties for not addressing environmental concerns
Climate stress tests are cold comfort for banks
Flaws in regulators’ methodology for gauging financial impact of climate change undermine transition efforts, argues modelling expert
ECB official open to offering liquidity aid to non-banks
Deputy director doesn’t rule out copying UK plan to extend repo facility to pension funds and life insurers
BoE will need to closely monitor shift to T+1 if it is to succeed – report
UK will move to accelerated settlement by 2027, even if rest of Europe has yet to align
Shared EU debt not ‘essential’ for competitiveness boost – Draghi
Former ECB chief also says his proposal for €750bn of extra annual investment is “conservative”
How (not) to review your monetary policy framework
The Fed made some mistakes in its last strategy review. As it prepares to have another go, it could learn from other central banks
‘Unpredictable’ risk driven by AI, geopolitics – Lagarde, Buch, Rehn
European supervisors call for caution – and more authority – at ESRB annual conference
Middle income countries form largest membership of World Bank Ramp
Central banks highlight market intel, support, training as partnership gains
Supervisors use generative AI to tame ‘chaotic’ data
Officials merge credit databases with unstructured reports to sharpen bank oversight, explains Banco de España ex-deputy
Pricing and funding pressures from BoE's QT hit gilt repo dealers
QT-driven funding cost rises combined with clients’ price demands see at least two banks pull back
Half of middle income central banks intervened in FX markets in 2023
Liquidity tranches form largest part of reserves in lower-middle income countries
Most high income central banks engage in securities lending
But liquidity stress-testing tends to be common practice across middle income institutions
Central bank digital currencies must be user-friendly – ECB study
To be widely adopted, CBDCs will need to combine best aspects of existing payment methods
Large reserve holders use external managers for intel and new assets
Staff training trumps new asset class adoption as overall goal for third parties’ engagement
Asset delegation to external managers averages just 12%
One in 10 central banks considering reviews of allocations to external managers