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Asset purchases won’t exclusively mean ‘easing’ for much longer (POLITICO)

By Johanna Treeck, Carlo Boffa · Mar 6, 2024 FRANKFURT — Since large-scale liquidity operations became the norm, markets have become accustomed to treating asset purchases of any sort as a signal that authorities are in monetary easing mode. But that is set to change. Central bank liquidity is now in retreat, which means the […]

ECB eyes floor system with ample liquidity for its new framework (POLITICO)

By Johanna Treeck · Mar 1, 2024 FRANKFURT – European Central Bank policymakers are approaching a “broad consensus” on a new way of steering short-term interest rates and, indirectly, the eurozone economy, people familiar with the discussion told POLITICO. According to central bank officials, the ECB will maintain a so-called “floor system” where “ample” central […]

Critics blast outgoing SNB chief for maintaining bank’s opaque structures (POLITICO)

By Ben Munster · Mar 5, 2024 The acclaimed 12-year run of Switzerland’s retiring central bank governor was tainted by autocratic processes enabled by the opaque decision-making structures of the Swiss National Bank, three prominent economists have said. Thomas Jordan unexpectedly announced Friday that he plans to leave the Swiss National Bank (SNB) in September, […]

EU plans to create war-ready defense-industrial complex (POLITICO)

By Jacopo Barigazzi, Laura Kayali, Joshua Posaner · Feb 27, 2024 BRUSSELS — The EU wants to shift its defense industry onto a war footing, laying out its plan in a 27-page draft of a European Defence Industry Strategy seen by POLITICO. A few of the most far-reaching proposals made during the consultation process — […]

The West tried to crush Russia’s economy. Why hasn’t it worked? (POLITICO)

By Nahal Toosi, Koen Verhelst, Ari Hawkins, Gabriel Gavin, Kyle Duggan · Feb 23, 2024 Russia has faced a historic slew of penalties from Washington, Brussels and beyond since it launched its full-scale invasion of Ukraine on Feb. 24, 2022. The punishments, chiefly economic sanctions, were designed in large part to drain Russia’s coffers so […]

Is world war looming? Europe’s policy pivot reveals leaders’ fears (POLITICO)

By Bjarke Smith-Meyer · Feb 15, 2024 BRUSSELS ― Europe is gearing up for war. That much is obvious. Whispered conversations among the EU’s most influential decisionmakers reveal a disturbing new truth: Gone are the days when the bloc had the luxury of prioritizing the green agenda or improving competitiveness. Now it’s all about coping […]

The ECB is taking a long hard look at itself (POLITICO)

By Johanna Treeck, Carlo Boffa · Feb 9, 2024 FRANKFURT — When the global financial crisis struck in 2008, panicked central bankers desperate to stop the system collapsing and avoid deflation did the unthinkable: they threw out their operating manuals and cranked up the money printers to unprecedented levels. In the process they created a […]

Pre-positioning: the quiet revolution rocking central banking (POLITICO)

By Izabella Kaminska · Jan 19, 2024 There’s a quiet revolution happening at the heart of central banking, but you wouldn’t necessarily know it. On the surface, the inconspicuous language around the shift makes it sound like any other boring back-office central bank protocol. For now, even financial markets haven’t picked up on its significance. […]