The European Central Bank’s hesitancy in raising interest rates to counteract spiralling inflation is compounding problems of misaligned exchange rates, intensifying disequilibrium in international current account balances. Widespread perception that the ECB is falling behind the US Federal Reserve and Bank of England in rate-tightening, by depressing the euro on the foreign exchanges, is likely to stoke further euro area inflation by raising import prices.
Fragmentation monster looms again for ECB By Ignazio Angeloni Renewed interest in monetary policy discussions coincides with new problems and risks facing central banks. Undecided on how to move, central bankers have been dragged into controversies which risk denting their leadership and prestige.
MEETINGS Financial relations between Italy and Europe Thursday 26 May, Roundtable Luigi Disanto, director general for European financial relations, Ministry of the Economy and Finance, Italy, discusses the economic implications of Russia’s invasion of Ukraine and Italy’s continued response to the Covid-19 pandemic.
ON DEMAND Ukraine safeguards relations with international investors Yuriy Butsa, Ukraine’s government commissioner for public debt management, joined OMFIF’s public debt summit. Speaking in a video interview, he discussed the resolute management of Ukraine’s finances and why the country has continued to issue bonds to international investors at a time of crisis.
Data: Towards a new age of economic enlightenment As regulators and policy-makers work to balance protection and innovation in their evolving frameworks, this landmark report explores the use of data and its potentially transformative impact on developments in the global economy, financial services, the business community and society as a whole.
