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

• [New] At the wholesale level, the Eurosystem's Pontes initiative will connect TARGET services to distributed ledger technology (DLT) platforms, enabling settlement of DLT-based wholesale financial transactions in central bank money by the third quarter of 2026. European Central Bank
• [New] The European Central Bank is expected to adopt a more hawkish stance, with policymakers signalling that interest rate increases could begin as early as June should inflationary pressures persist. KPMG
• [New] Indonesia's central bank surprised markets with a larger-than-expected rate hike and a pledge to step up currency intervention. The Star
• [New] A sustained oil price shock that reignites inflation fears would likely delay or reverse any dovish pivot from the Federal Reserve. Crypto Briefing
• [New] The Bank of England is expected to raise interest rates in response to rising inflation in 2026. The Guardian
• [New] The Bank of England will place more weight on inflation than growth risks. Money Marketing
• [New] Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, with expectations of a 25-basis-point hike in December. ST
• [New] The Fed held interest rates steady at 3.5% -3.75%, but markets expected fewer rate cuts ahead. POEMS
• [New] At the Federal Reserve, recent commentary has reinforced the idea that policymakers are gradually shifting away from an easing bias toward a more neutral stance as inflation risks tied to energy prices remain elevated and the broader economy continues to show resilience. Mortgage News Daily
• [New] European inflation cooling faster than expected creates a genuinely different monetary policy dynamic than the US is experiencing. Synergistic Financial Advisors
• [New] For US-centric portfolios, adding genuine international exposure through Asia and Europe creates both diversification and the potential for meaningful relative outperformance as global monetary policy paths diverge. Synergistic Financial Advisors
• [New] The digital euro and tokenised wholesale central bank money will enhance Europe's strategic autonomy, competitiveness and financial integration, and will boost innovation in payments. European Central Bank
• [New] Developments in the geopolitical landscape, particularly regarding the Iran conflict, could impact future monetary policy expectations. Crypto Briefing
• [New] Tensions with the U.S. could drive Germany to move its gold away from an American central bank. Fortune
• [New] Higher costs could prompt the Bank of England to consider additional monetary tightening, potentially as soon as July, to curb price rises. Crowdfund Insider
• [New] CBDC may head off the threat to monetary sovereignty from stablecoins issued by global digital services companies like Facebook, which would threaten central banks' ability to conduct monetary policy. CEPR
• [New] The Federal Reserve is not going to issue a digital dollar. Plisio
• [New] The Federal Reserve may be forced to raise rates again as early as July to calm growing concerns from bond vigilantes, investors who are demanding higher yields due to rising inflation risks and expanding government debt. City Creek Mortgage
• [New] In developed economies, inflation is forecast to rise from 2.6% in 2025 to 2.9% in 2026, edging further above central bank targets in most cases. DESA Publications

Last updated: 04 June 2026