Some questions that a Bank of England review should ask
The Bank of England is approaching the 30th anniversary of operational independence and a wide-ranging review is likely. With growing political interest in the issue,
The implications of climate change for monetary policy
Climate change and the transition to net zero are reshaping the macroeconomy, with important implications for monetary policymakers’ core price-stability objectives. As physical hazards become
A nascent international financial channel of China’s monetary policy transmission
China is the world’s second-largest economy, and its monetary policy can affect global demand and trade. Using granular mutual fund data, this column finds that
The bank collateral channel of monetary policy: Evidence from securities losses
Sharp increases in interest rates can reduce the market value of banks’ securities holdings and threaten financial stability. Using euro area data for 2022-2023, this
Dollar dips ahead of US inflation data, supported by rate outlook
Reuters poll forecasts U.S. headline inflation at 3.8%. The dollar remained in sight of 13-month highs on Tuesday ahead of U.S. inflation data, which will
Exchange rate communication in practice: Evidence from two decades of ECB press conferences
Evidence is mixed on whether central banks can influence exchange rates simply by talking about them. This column explores this question by analysing more than
Hedging interest rate risk when it matters: Evidence from Italian banks
Valuation losses can build quickly in response to higher interest rates, as demonstrated by the collapse of Silicon Valley Bank. This column shows that Italian
When trust in official statistics declines
Trust in official economic statistics has become an increasingly salient policy issue, including in the US where the Commissioner of the Bureau of Labor Statistics
When central banks over-deliver, markets listen differently
Financial markets pay close attention to monetary policy, and surprise policy decisions can strongly affect asset prices and the real economy. This column shows that
Should the European Central Bank slow down quantitative tightening?
The ECB could slow down QT in response to currently tight financial conditions, but should communicate its intentions with care. Since early 2023, the European
