Central Banks latest publications
June will be a key month for discovering how the two main central banks—the Federal Reserve (Fed) and the European Central Bank (ECB)—plan to begin to reverse the unprecedented expansionary policies launched at the start of the COVID-19 crisis.
After having seemingly vanished as a source of concern for many years, the fear of inflation has re-emerged, along with the first green shoots of recovery.
The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in June. The Bank will maintain a strongly expansive stance but removed mention of it being for a prolonged period.
Today’s policy meeting saw the ECB leave its rates unchanged while maintaining the current pace of PEPP purchases, but delivered a moderately positive assessment of the evolving economic situation. This despite an acknowledgement of the underlying uncertainties posed by the pandemic
Digital money has been around for some time: the deposits we hold in banks, and in turn the reserves banks hold in central banks, consist of money that for decades has been registered and operated digitally. However, some concern has now arisen about the so-called "digital currencies".
The tables have recently turned for the common European currency as it once again moves toward appreciation. Following the period of weakness it experienced earlier this year, the euro has appreciated by over 3.5% so far this quarter, exceeding 1.22. This appreciation occurred earlier than expected.
May 14, 2021
Peru | Central Bank will maintain strongly expansive policy stance for a prolonged period
The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in May. The Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period and reaffirmed its message of absence of inflationary pressures.
As expected, Banxico acknowledged high inflation and rising risks, but at the same time noted that is still expecting inflation to converge to 3.0%, now in 2Q22.