ECB’s Lane downplays prospect of durable inflation, Asia Pacific working to narrow ESG gaps, and more
Latest opinion and analysis from OMFIF around the world
3-7 May 2021, Vol.12 Ed.18
ECB’s Lane downplays prospect of durable inflation: Prolonged weakness in the labour market will offset inflationary pressures in the euro area, Philip Lane, the European Central Bank’s chief economist, told an OMFIF briefing last week. As a result, the ECB is ready to maintain large-scale asset purchases if warranted by economic and financial conditions. Lane also hinted that the ECB may adapt its stance on ‘market neutrality’ as part of its strategy review due in September, writes Clive Horwood. Read more.
Asia Pacific working to narrow ESG gaps: Globally there is a lack of ESG data. Regional ESG disclosure frameworks in Asia Pacific are not as well-established as those in the EU and the US. While this is improving, it will take a few years to develop the datasets required for quality ESG insights, writes Dael Wilson.
Taking stock: ECB strategy review and monetary policy challenges: Philip Lane, chief economist and member of the executive board of the European Central Bank, joins David Marsh, chairman of OMFIF to discuss the status of the ECB’s monetary policy strategy review and challenges for monetary policy in the current environment.
In conversation with Kevin Stiroh: Kevin Stiroh, senior adviser at the Federal Reserve, discusses the Fed’s Supervision Climate Committee and its work to increase standards, supervisory practice and capital to mitigate climate-related financial risk. Stiroh discusses the Fed’s efforts to build coordination with national and international bodies, as well as challenges to data modelling climate-related risk.
ECB asset purchases dilute European rule of law: Political expediency is diluting the rule of law in the EU’s monetary and fiscal policy. By signalling to bond traders that it will buy newly issued government bonds in the secondary market in its purchase programmes, the European Central Bank is effectively circumventing the rules of the Treaty on the Functioning of the EU, writes Thomas Mayer.