Quantitative easing
Most asset purchase programmes are winding down
Around a quarter of respondents have open APPs but most are shrinking
QE should stabilise rather than stimulate – ECB’s Schnabel
Asset purchases have become conventional, but central banks should exercise caution
Risks facing central banks: action and inaction
Unlike Fed policy in the 1990s, central bank actions this century do not appear overly accommodative, given poor policy decisions elsewhere, writes Andrew Smithers
Bailey predicts ‘significant increase’ in BoE repo operations
Banks have started demanding reserves through short-term repo facility as balance sheet shrinks
Trends in reserve management 2024: survey results
Insights on geopolitical risk, AI, asset diversification, risk management and ESG adoption
QE helped smooth sovereign bond yields, ECB paper finds
Eurosystem’s asset purchases helped reduce effect of “auction cycle”, researcher says
RBA to shift to ‘ample reserves’ operational framework
New approach will be simpler to operate and reduce market volatility risk, assistant governor Kent says
ECB economists highlight smooth quantitative tightening
Foreign investors are largest euro area securities holders, but households are buying more
ECB unveils new monetary policy framework
Move will see central bank make cheaper loans to eurozone lenders as it shrinks its balance sheet
‘Passive’ QT can be costly, BoE paper finds
Research highlights need to account for frictions and build “headroom” for future shocks
BoJ may scrap ultra-loose policy at March meeting, reports say
Policy-makers could be mulling speedy end to yield target and negative rates
Dallas Fed chief says pace of QT may need to slow down
Lorie Logan argues US central bank should take more measured approach to normalising balance sheet
Escaping the structural liquidity trap
Investment needs to be subsidised not taxed if developed countries want to avoid inflation and financial crises, writes Andrew Smithers
Managing reserves amid climate change and home-shoring
Central banks can still make asset allocations with solid climate outcomes, despite slippage in the net-zero timetable, writes Gary Smith
Polish governor appeals to ECB for support against removal
Lagarde says “not lawful” impeachment could harm central bank independence
ECB’s Schnabel does not rule out rate cut before mid-2024
Executive board member deems more rate hikes “rather unlikely”
Riksbank keeps policy rate at 4%
Most analysts think the Swedish central bank has reached peak rate
The predicament of bloated central bank balance sheets
Swollen balance sheets carry significant risks for combating inflation, ensuring financial stability and preserving central bank credibility, independence and effectiveness. How can central banks reduce them?
Riksbank needs a capital injection, says governor
Swedish central bank estimates it would need close to Skr80 billion
Joachim Nagel on the ECB’s terminal rate, fiscal policy, model relevance and the digital euro
The Deutsche Bundesbank president speaks about compromise on the Governing Council, rolling back PEPP, the need to implement Basel III and the chances of a revised Stability and Growth Pact
QE crowds out bank loans – NBER paper
Asset purchases generate “counterproductive” cut in lending to firms, authors find