Central banks

Energy security and industrial competitiveness: the case for a European Energy Union

05/18/2026 European Central Bank Central banks

The European energy market remains heavily reliant on imported fossil fuels and fragmented across Member States. This leaves the EU exposed to high and volatile energy prices, posing risks to its growth outlook and its international competitiveness. As the EU advances its energy security and climate neutrality objectives, the role of electricity and renewable energy is set to increase at the expense of fossil fuels.

FCA and Bank of England set out shared vision for tokenisation in UK wholesale markets

05/18/2026 Bank of England Central banks

The Financial Conduct Authority and the Bank of England set out a shared vision and seek industry views on the future of UK wholesale markets

PRA announces ring-fence change to reduce costs

05/17/2026 Bank of England Central banks

The Prudential Regulation Authority has today announced plans to consult on reforming rules around shared operational services for ring-fenced banks.

The Bank, FCA and HM Treasury joint statement on Frontier AI models and cyber resilience

05/15/2026 Bank of England Central banks

Statement from the Bank of England, Financial Conduct Authority and HM Treasury

Tariffs and foreign direct investment – a nuanced relationship

05/15/2026 European Central Bank Central banks

Tariffs have re-emerged as a key policy tool amid rising protectionism, renewed industrial policy activism and growing geopolitical fragmentation. This article analyses the conditions under which tariffs can encourage new greenfield foreign direct investment (FDI) projects, with a focus on the manufacturing sector. The results indicate that tariffs can encourage “tariff-jumping” greenfield FDI projects aimed at serving local markets.

What’s new in the HICP? The 2026 classification update and its implications for inflation analysis

05/15/2026 European Central Bank Central banks

The European Central Bank (ECB) defines its price stability target in terms of the HICP, the official measure of consumer price inflation in the euro area. Several changes have been implemented in the compilation of the HICP as of the January 2026 data release. Most importantly, the European Classification of Individual Consumption according to Purpose (ECOICOP) version 2 has been introduced for consumer goods and services. This box describes the main features of the new classification and outlines its impact on the HICP.

Dispersion in real GDP growth across euro area countries: developments and drivers

05/15/2026 European Central Bank Central banks

This box examines developments and drivers of dispersion in real GDP growth across euro area countries

Assessing cross-border integration of equity markets in the euro area: evidence from a gravity model

05/15/2026 European Central Bank Central banks

Euro area financial markets hold significant untapped potential: deeper cross-border integration would improve the allocation of savings, lower the cost of capital and strengthen capacity to finance investment and innovation. To assess how the integration of euro area equity markets has evolved over time, this box applies a structural gravity model, the workhorse of international trade analysis, to bilateral euro area equity holdings.

FEDS Paper: A Tale of Demand and Supply for Central Bank Reserves

05/13/2026 Federal Reserve Central banks

Sriya Anbil, Sebastian Infante, Zeynep SenyuzIn an ample-reserves framework, administered rates anchor money markets but suppress information from unsecured interbank trading. We recover that information by isolating the small interbank segment of the federal funds market.

FEDS Paper: Does Banking Consolidation Harm Households?

05/13/2026 Federal Reserve Central banks

Celso Brunetti, Jeffery H. Harris, Ioannis SpyridopoulosNo, in the mortgage market. Using confidential micro-level data combining mortgage contracts with credit and repayment records for 44 million loans spanning 5,000 bank mergers over nearly three decades, we find no changes to mortgage rates, approval rates, or delinquency rates. Local mortgage markets remain remarkably competitive despite consolidation, averaging over 100 active lenders in each county every post-merger quarter.

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