Central bank news covering ECB, Bank of England, Bank of Japan, interest rate decisions, and global monetary policy developments.
The Reserve Bank of India's currency-printing arm issued a tender for polymer substrate sheets to print banknotes, with bids due by August 18. The initial polymer notes are likely to be in lower denominations of Rs 10 and 20. The tender bars bidders from sourcing raw materials from China or Pakistan.
This commentary argues that as the Bank of England's balance sheet approaches its preferred minimum range, the shift to short-term repo operations may tighten liquidity and crowd out private activity. It suggests introducing longer-term repos and a structural bond portfolio to anchor liquidity and meet regulatory needs.
This commentary argues that Bank of Canada Governor Tiff Macklem has faced a series of unprecedented supply shocks during his tenure, from COVID-19 to geopolitical conflicts, and that the central bank is adapting by developing new forecasting models to better navigate a more volatile global economy. It suggests that the bank's initial misreading of inflation stemmed from models ill-suited to supply-side disruptions.
Goldman Sachs stated that strong central bank gold purchases in May, estimated at 81 tonnes, provide a price floor amid hawkish Fed pressure. The bank maintains its 2026 end-year gold forecast of $4,900 per ounce, citing structural demand since Russia's reserve freeze.
This commentary argues that Federal Reserve Chair Kevin Warsh's proposal to reduce the central bank's balance sheet as a tightening measure may be misguided. The author cites Japan's experience with balance-sheet reduction, suggesting it did not work as intended and may not be the panacea Warsh believes.