Central bank reserve managers have become "obsessed" with short-term results and should focus instead on a longer time-horizon, according to Franco Passacantando, the former managing director for relations with international institutions at the Bank of Italy.

Due to their unique positions in an economy, central banks do not face the same funding pressures as commercial banks, meaning they can review their positions over a longer period of time. But this is an "opportunity" that "not many reserve