Europe
Central banks’ coverage ratio drops by 23%
Reserves buffers to cover monthly imports decline to 6.9 months
ECB will not consider QT until rates back to normal – Lagarde
Central bank holds close to €5 trillion in eurozone securities, over €4.2 trillion in public assets
Governments should raise taxes to support energy bills – ECB’s Lane
Firms must stop trying to make large profits or face tougher policy, ECB chief economist warns
Staff salaries at reserves departments increased 17.6% from last year
Total staff numbers declined by 10% to 27
ECB’s green bond plan is insufficient, NGO says
ECB plan shies away from excluding high carbon output companies, says Reclaim Finance
Inflation: what went wrong, and why?
Charles Goodhart and Manoj Pradhan detail three theories on the causes of high inflation, as well as their implications for policy responses
More central banks expand existing liquidity swap lines
More than 23% of participating countries gained access to IMF facilities over past year
Share of central banks screening ESG risks declines slightly
Central banks in Europe in top slot for including ESG criteria on their benchmarks
Central banks divided on how Russia sanctions will hit reserve currencies
Non-European central banks more likely to expect a growing role for renminbi in reserves portfolios
ECB lays out plan to green corporate bond portfolios
Central bank will focus on issuer-specific climate scores
Most central banks will not alter diversification due to high inflation
Over 63% of central banks do not plan changes, almost 27% are discussing modifications, and close to 10% have already implemented them or plan to do it
Social media: an essential tool for central bank communication
Strategies to secure popularity, comprehensibility and reputation as new media takes centre stage
Norges Bank, Riksbank and SNB expected to raise rates
High inflation and ECB tighter policy stance put pressure on eurozone’s neighbours
Boards remain key body in benchmarking approval
In almost 60% of central banks the board makes final decision, investment committee in 29%
Economy’s ‘first responders’ now in the line of fire
Forceful but late interventions to combat inflation raise the risk of central bank overreactions
ECB could bring rates close to 2% by year’s end, says French governor
François Villeroy de Galhau estimates eurozone’s neutral rate is below or near 2%
More central banks engage in gold lending and swaps
Securities lending is more common among central banks from high income jurisdictions
IMF paper explores second-round effects of oil shocks
Authors find oil shocks have greater impact where inflation is already high
Summers and Krugman see no alternative to ECB tightening
Despite lack of overheating, huge energy shock requires action to anchor inflation expectations
Over 18% of central banks adopted new reserves assets last year
Middle income jurisdictions led the trend, 28.6% diversified their asset allocation
Emerging markets central banks maintain lead in portfolio tranching
European institutions are less likely to implement this strategy
ECB raises rates on government deposits to ease transition
Governments should make “alternative arrangements”, ECB says, after pandemic saw deposits rise
Morocco’s Jouahri on inflation, forex reform, digitalisation and sustainability
The Central Bank of Morocco governor speaks with Christopher Jeffery about Covid-19 policies, Fed tightening, BIS membership, regional co-operation and financial inclusion