
14-15 June FOMC meeting: Fed becoming worried about inflation expectations
The Fed is not on a preset course to raise the funds rate by another 75bp at July’s FOMC meeting, but rather remains data-dependent.
Climate change: Central Banking focus report is online, Wednesday 26 June 2019
ESG, Research / Market
As climate-related risks to the financial sector become increasingly understood, central banks are demonstrating their willingness to develop capabilities to analyse the impact and modify their policies. A new survey, made in partnership with Amundi, indicates a watershed for central banks that could profoundly transform policies over the coming years.
Executive summary
The survey questionnaire was sent to 100 central banks in March 2019. By the middle of April, responses had been received from 34 central banks. The central banks responded on the condition of anonymity, and that neither the banks nor their officials would be cited in the report. Of these 34 respondents, 44% were from Europe and 41% were from emerging market economies. Almost all central banks that took part are from countries that have signed the Paris Agreement on climate change.
The main findings include the following statements:
The Fed is not on a preset course to raise the funds rate by another 75bp at July’s FOMC meeting, but rather remains data-dependent.
The fragmentation of votes into irreconcilable political blocs with no absolute majority creates a political situation unprecedented under the Fifth Republic.
Last year global sustainable debt issuance hit a record of over $1.4tn, with the overall sustainable debt universe expanding to near $3.4tn. In the first quarter of 2022 this healthy trend halted temporarily, as high energy prices and rising borrowing costs weighed on market trends.