The central bank’s balance sheet and treasury market disruptions
This paper studies how Treasury market dynamics depend on adjustments to the central bank balance sheet. We introduce a dynamic model of Treasury bonds with traditional and shadow banks. In the model, both Treasury and repo market disruptions arise as a joint consequence of three frictions: (i) balance sheet costs,(ii) intraday reserves requirements, and (iii) imperfect substitutability between repo and bank deposits.
The central bank’s balance sheet and treasury market disruptions
This paper studies how Treasury market dynamics depend on adjustments to the central bank balance sheet. We introduce a dynamic model of Treasury bonds with traditional and shadow banks. In the model, both Treasury and repo market disruptions arise as a joint consequence of three frictions: (i) balance sheet costs,(ii) intraday reserves requirements, and (iii) imperfect substitutability between repo and bank deposits.
The unexpected upside of depreciation: bridging Europe’s income divide
This paper investigates the impact of foreign exchange (FX) shocks on income inequality across 31 European countries from 2003 to 2021. Leveraging a unique database of household-level longitudinal data from the European Union Statistics on Income and Living Conditions (EU-SILC) and exchange rate data from the Bank of International Settlements, we investigate how currency devaluations and appreciations influence income distribution.
Ex-CISA Official Warns: We’ve Gutted Cybersecurity—A Gift to Iran, China and Russia
Dr. David Mussington, cybersecurity expert with two decades of experience, reveals why the clock is ticking on U.S. vulnerabilities under Trump.
As international tensions increase, cyberwarfare and ransomware attacks loom—and America’s digital defenses face a perfect storm of foreign attacks, criminal behavior, and self-inflicted damage.
Statistical Notice 2025/04 - Bank of England Levy: Notification Document Levy Year 2025/26
Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder
The international dimension of repo: five new facts
We analyze the international dimension of repo markets using novel euro area regulatory microdata. Our findings highlight the deep integration of funding markets across the Atlantic and the US dollar’s outsized role.
Inflation and floating-rate loans: evidence from the euro-area
We provide novel evidence on the supply-side transmission of monetary policy through a floating-rate channel. After a rate hike, firms with floating-rate loans keep prices elevated to offset higher borrowing costs, thereby reducing the effectiveness of monetary policy. Using monthly data on product-level prices, industry-level inflation rates and the euro-area credit register from 2021 to 2023, we find that the short-run impact of monetary tightening on inflation is 50% smaller when firms rely on floating-rate loans.
Why energy markets fluctuate during an international crisis
Stock and commodities traders found themselves dealing with various price swings as energy markets responded to Israeli and U.S. attacks on Iran. Timothy A. Clary/AFP via Getty ImagesfGlobal energy markets, such as those for oil, gas and coal, tend to be sensitive to a wide range of world events – especially when there is some sort of crisis.
Evaluation of horizon scanning
In December 2023 the Bank’s Court of Directors commissioned its Independent Evaluation Office (IEO) to conduct an evaluation of whether the Bank uses horizon scanning effectively to inform decision-making and support its mission.
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