The OMFIF Podcast
Benefits and risks of CBDCs in emerging markets

Benefits and risks of CBDCs in emerging markets

August 8, 2022

Melvin Khomo, general manager for financial markets at the Central Bank of Eswatini, joins Dieter Sauter, general manager of the business unit value printing at Bundesdruckerei, and Lewis McLellan, editor of the Digital Monetary Institute, to discuss what advantages a central bank digital currency can deliver. The importance of a robust means of digital identity verification as a means of improving financial inclusion as well as part of the foundation for digital currency infrastructure and the importance of creating a robust, secure platform that citizens will feel confident in adopting are also covered.

Why public asset owners are at an inflection point

Why public asset owners are at an inflection point

August 4, 2022

Public asset owners are at an inflection point as traditional investment strategies and business models are challenged by a rapidly changing landscape. Sovereign funds, public pension funds and central banks, which collectively hold over $40tn in assets, need to adapt to an industry in flux to achieve their core goals.

In a far-reaching, survey-based report, ‘The Evolution of Public Asset Owners’, BNY Mellon finds that the majority of public asset owners are seeking new and bold ideas in search of yield, that only 6% are satisfied with their business models and a solid majority have begun operational transformation, in large part to meet the demands of digitisation and data challenges. Christine Mikolajuk, Europe, Middle East and Africa chief operating officer for global client management at BNY Mellon, joins Patricia Haas Cleveland, OMFIF US president, to discuss the report's findings.

What to expect from the August Bank of England meeting

What to expect from the August Bank of England meeting

August 2, 2022

With Governor Andrew Bailey conveying to an OMFIF gathering that the monetary policy committee ‘will, if necessary, act forcefully… no ifs and buts’ to get consumer price index inflation down to its 2% target, all eyes will be on the MPC’s August announcement. Further - and potentially heavier rate hikes - look inevitable, as the Bank reclaims its cherished policy tool, while in tandem, though not with equal force, starting a process of active quantitative tightening (gradually selling the Bank’s assets). August’s meeting thus provides an important opportunity to take the next steps - with a possible sixth rate hike since December, of at least 25 basis points and very possibly more, and a pathway for QT.

To discuss the issues, Neil Williams, OMFIF’s chief economist, speaks with OMFIF economist, Taylor Pierce.

Craving – rather than fighting – inflation

Craving – rather than fighting – inflation

July 28, 2022

Despite other central banks flexing their muscles, Japan’s authorities have every reason to prolong a policy loosening in the Bank of Japan’s 24th year. Japan’s quantitative easing will have to continue with policy rates suppressed, leaving the ministry of finance reliant on the Bank of Japan as its monetary agent. Yet, deep in a liquidity trap, it’s doubtful easier money alone will prove any different, suggesting the late Prime Minister Shinzo Abe was right to believe that other policy strands would be needed. In the longer term, is Japan still a test case for others?

OMFIF Chief Economist Neil Williams covers the issues with Economist Taylor Pearce. For more, see ‘Breaking Japan’s deflationary psychology’. (https://www.omfif.org/2022/07/breaking-japans-deflationary-psychology/)

Why do we need social taxonomy?

Why do we need social taxonomy?

July 26, 2022

Elia Trippel, policy analyst at the Organisation for Economic Co-operation and Development, spoke with Katerina Atkins, programme coordinator of OMFIF’s Sustainable Policy Institute, about the objectives and metrics of a social taxonomy and the process of its development in the European Union.

What to expect from the 21 July ECB meeting

What to expect from the 21 July ECB meeting

July 20, 2022

The European Central Bank has been slower than most to pull away the monetary rug, but it now stands ready with a key announcement on 21 July. What should we expect as it raises rates and, having stopped net purchases, sets out its stall for reinvesting member governments’ maturing bonds? Can the two levers be used in equal force, or will onus have to be on rate hikes over quantitative tightening to avoid fragmentation risk? What could possibly go wrong? How should asset allocators play it as the ECB is set aside from other central banks, having to manage a monetary union short on economic union? And, after an initial hike in July – the first for 11 years – what might we expect from the 8 September meeting and beyond?

To discuss the issues, Salman Ahmed, global head of macro & strategic asset allocation at Fidelity International, speaks with Neil Williams, OMFIF chief economist.

For more on the ECB’s soon-to-be-unveiled anti-fragmentation tool, see Eight thorny questions over ECB fragmentation. https://www.omfif.org/2022/07/eight-thorny-questions-over-ecb-fragmentation/

Max Castelli on reserves management in a time of uncertainty

Max Castelli on reserves management in a time of uncertainty

July 19, 2022

Investors, issuers and policy-makers are all trying to make sense of the war in Ukraine, a global pandemic, more than a decade of cheap money and now rising interest rates and inflation. How do the world’s reserves managers view the global macro outlook? What are the main concerns and drivers? And what are their strategies for asset allocation and integrating environmental, social and governance strategies?

Max Castelli, head of strategy and advice, global sovereign markets, UBS Asset Management, joins Neil Williams, chief economist, OMFIF, to discuss these key questions and delve into reserves managers’ priorities and concerns in the future.

Quantitative Tightening: how fast, how far?

Quantitative Tightening: how fast, how far?

June 23, 2022

OMFIF Chief Economist Neil Williams speaks with Economist Taylor Pearce in a lightning-round podcast on quantitative easing. They discuss the situation regarding quantitative easing, why central banks are so slow to wind down their balance sheets and what the benefits of running QT would be. For more on this theme, check out Williams’ commentary ‘Central banks can tighten by doing nothing’.

Next Generation EU with Siegfried Ruhl: one year later

Next Generation EU with Siegfried Ruhl: one year later

June 21, 2022

The €800bn Next Generation EU fund – set up to help finance Europe’s recovery from the economic damage of the Covid-19 pandemic – has been operating since last June. How is its lending schedule and debt management office-like funding programme going? How has its market-changing green bond programme progressed? Who is buying its bonds? How will it operate after 2026, when its initial mandate is complete? How does it compare to other European agency and sovereign borrowers? Might it help finance the eventual reconstruction of Ukraine? Siegfried Ruhl, Hors Classe Advisor at the European Commission's budget department, speaks to OMFIF CEO John Orchard ahead of the conference on the NGEU in Singapore.

Financial stability outlook: global and European perspectives

Financial stability outlook: global and European perspectives

June 16, 2022

Just as economies and financial markets around the world were beginning to recover from the unprecedented Covid-19 shocks, fallout from the war in Ukraine has heightened global financial risk once again. How have the post-2008 financial crisis stability frameworks fared in response to these crises? Pedro Duarte Neves, adviser for the board of directors, Banco de Portugal, and Bill Papadakis, investment strategist for Lombard Odier's macro team, speak to Taylor Pearce, OMFIF economist, about the various facets of financial stability for the euro area and globally, including the risks associated with corporate debt levels, sustainability imperatives and non-bank financial institutions.

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