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

• [New] Last week, the European Central Bank fined Credit Agricole €7.55 million for failing to complete a mandatory climate risk materiality assessment, signalling a decisive shift from guidance to enforcement. Mishcon de Reya LLP
• [New] The Bank of England is expected to keep the policy rate unchanged. Headway
• [New] The Federal Reserve could have more leeway to ease than current consensus implies, despite surface-level indicators pointing to economic resilience. investing.com
• [New] The European Central Bank just confirmed digital euro legislation is coming in 2026 with a pilot in late 2027 and first issuance targeting 2029. TechBullion
• [New] On the economics front, a hotter-than-expected Producer Price Index reading fortified expectations that the US Federal Reserve is unlikely to cut its key interest rate in the near term. ST
• [New] The Turkish Central Bank will likely continue cutting interest rates in 2026. Invezz
• [New] Rising political risks and expectations of a Bank of England rate cut as early as March are putting pressure on GBPUSD. investing.com
• [New] The shift in sentiment reinforces expectations that policymakers at the Bank of England will have limited room to maintain restrictive policy for much longer. investing.com
• [New] Central bank demand is structural and programmatic - 95% of surveyed institutions expect global reserves to grow. investing.com
• [New] We anticipate further easing by the US Federal Reserve, and the high yields available in the asset class should support continued positive returns. UK | Institutions
• [New] Without direct intervention from the Federal Reserve or the federal government, mortgage rates are more likely to drift gradually lower as inflation risks and economic uncertainty continue to ease. Yahoo Finance
• [New] A more synchronized easing of monetary policy, especially among advanced economies, could further support global demand and financial conditions. APEC
• [New] The persistent nursing and home health aide shortages have led to healthcare wages growing at double the national average, creating a potential wage-push inflation risk that the Federal Reserve is monitoring closely. The Chronicle-Journal
• [New] Most jurisdictions expect to launch a central bank digital currency within a period of five to 10 years, data from the Fintech Benchmarks 2026 shows. Central Banking
• Goldman Sachs forecasts gold could climb toward $5,400 by the end of 2026, driven by continued central bank buying and sustained safe-haven demand. American Standard Gold
• Experts warn of a 2026 policy effectiveness trap where demographic shifts and credit exhaustion render central bank interventions powerless. TheBoard
• S&P predicts headline inflation to stay elevated through 2026 and possibly 2027 before easing by 2028-2029, supported by tight monetary policy, narrower deficits, and slower consumer lending growth. The Astana Times
• The Bank of England's Monetary Policy Committee remains divided over whether inflation will remain on target. Natixis - Natixis CIB
• An exchange rate shock could trigger a change in course for monetary policy, Natixis CIB believes an appreciation of the Euro against the US Dollar to 1.25 or higher could justify a rate cut in 2026 as Europe seeks to protect competitiveness. Natixis - Natixis CIB
• Key risks to monitor include a sharper-than-expected global slowdown, inflation resurgence, political instability in Europe, and potential challenges to US Federal Reserve independence. https://www.bangkokpost.com

Last updated: 05 March 2026