Central Banks
SNB carries out first tokenised monetary policy operation
Central bank issued $72 million in bonds on DLT settled in wholesale CBDC
Bank of England holds rates as services inflation lingers
“We need to be sure that inflation will stay low,” governor Andrew Bailey says
Bank Indonesia holds policy rate despite rupiah weakness
Governor Perry Warjiyo vows further intervention to support the currency
PBoC holds key lending rates
Market-based lending rates remain unchanged as economic data remains mixed
Payments Benchmarks 2024 report – towards tokenisation
Benchmarks highlight optimism on tokenisation, hostility to crypto and efforts to upgrade RTGS
ECB paper presents new measure of bank performance
“Bank edge” compares individual banks’ book returns to benchmark portfolio
Russian central bank reacts to tighter US sanctions
Bank of Russia suspends some dollar trading as G7 countries consider moves against Chinese banks
PBoC overhauls monetary policy framework
Central bank aims for clearer policy rate, bigger role for bond trading and use of “structural” tools
Simpler models can capture dynamics of Hank framework – NBER paper
Heterogeneity can be “irrelevant” to determining output in some situations, authors find
Attention shifts to US, UK after European Union postpones FRTB
Global timeline still unclear, with banks hoping lawmakers will use delay to soften rules
UK inflation touches BoE’s target
Alignment with goal expected to be short lived but opens door to rate cuts later in year
Armenia receives support from IMF as inflation turns positive
Central bank carries out ninth consecutive cut but says inflationary pressures remain low
Iran to launch digital rial on Kish Island
Central bank aims to develop digital micropayments domestically
Expanded IMF mandate presents ‘serious’ challenges, review finds
Independent review finds staff have been overstretched by work on climate, gender and technology
RBA holds rates as inflation stays above target
Australian governor says rate-setters did not discuss a cut and forecasts rising real incomes
GenAI could amplify cyber risks – Banque de France official
Mass use of AI could amplify “herd behaviour” in financial markets, Denis Beau warns
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
Start small to secure resources for AI, central bankers say
Data-driven results could demonstrate GenAI’s usefulness, Summer Meetings hear
Central banks continue climate action despite political pressure
Reserve managers are expanding green investments, as some incorporate “double materiality”