Our Scans · (FS.1.02) Central Banking · Weekly Summary

• [New] The European Central Bank has announced changes to streamline the supervision of banks' internal models for credit risk, aimed at making the approval process for material model changes faster and more predictable while maintaining prudential safeguards. JD Supra
• [New] The US dollar remained subdued, trading near six-week lows on the DXY at approximately 97.7-98.2, driven by persistent hopes for a US-Iran peace agreement that diminishes its safe-haven appeal and expectations of Federal Reserve easing amid upcoming CPI data and leadership changes. IC Your Trading Edge | Official Blog | Blog
• [New] Markets have also scaled back expectations for Federal Reserve rate cuts as policymakers warn inflation pressures tied to energy costs, tariffs and geopolitical tensions could persist longer than expected. Benzinga
• [New] Central banks remain accommodative, with the Federal Reserve expected to cut rates by 50 to 75 basis points in 2026 amid sticky inflation. Sprott ETFs
• [New] Whenever there is a Fed transition, Treasury yields, duration risk, and credit spreads usually move faster as markets begin to reassess monetary policy. Synergistic Financial Advisors
• [New] Federal Reserve stress test capital buffers at the largest banks reduce systemic contagion risk even if a smaller institution faces stress. Lines.com
• [New] Both the European Central Bank and the Bank of England have expressed concern over potential systemic risks arising from private credit lately. CNBC
• [New] The Reserve Bank of New Zealand has updated its charter with changes its governor says will make it easier for monetary policy-makers to communicate their views. Central Banking
• [New] Amid external pressures and ongoing conflict in the Middle East, monetary policy is expected to remain tight. idnfinancials.com
• [New] The Federal Reserve will keep rates higher for longer, speculative assets usually face a tougher environment. investing.com
• [New] Last week the Bank of England held interest rates at 3.75% in a widely expected decision. Armstrong Watson
• [New] Unlike the divided Fed, the ECB has no doubts about what its next monetary policy move will be. investing.com
• [New] Federal Reserve rate expectations matter: fewer expected cuts in 2026 reduce the dollar-weakness channel that typically drives silver higher. Lines.com
• [New] Inflation is projected to rise to 3.1% in Germany and around 3% in the eurozone, limiting the scope for monetary easing by the European Central Bank and potentially further constraining economic expansion. Caliber.az
• [New] The odds that the Federal Reserve will hike rates instead of issuing more cuts in 2026 have shot up, a sign that investors are growing increasingly anxious about upside risks to inflation. Business Insider
• [New] Inflation pressure reappeared, oil remained a major risk because of the U.S.-Iran conflict and Strait of Hormuz disruption, housing stayed fragile, and the Federal Reserve became more divided. Otet Markets Blog
• [New] The Fed will maintain higher interest rates for longer to combat persistent inflation, delaying potential rate cuts. MEXC
• [New] If the Middle East conflict persists and oil prices do not fall, the European Central Bank will raise rates as early as June. investing.com
• [New] The Federal Reserve has highlighted risks of energy-driven inflation, while other major institutions such as the ECB, Bank of England, and Bank of Japan have also hinted at the possibility of tighter monetary policy in the near term. investing.com
• [New] Yesterday the Bank of England gave a major warning that the inflationary impact of the war in Iran could send inflation soaring to above 6% and force interest rates back up. City AM
• [New] The Bank of England voted to keep interest rates on hold on Thursday but warned that rates may need to rise if energy costs stay higher for a prolonged period. The Guardian
• [New] The Bank of Canada held its benchmark interest rate steady this week but warned that interest rates may need to change depending on the duration of the oil price shock and the outcome of trade talks with the United States and Mexico. rdnewsnow.com

Last updated: 14 May 2026