BIS Quarterly Review, March 2023

Perceptions of the future path of monetary policy shaped markets as central banks continued their fight against inflation.

BIS Quarterly Review  | 
27 February 2023
Media briefing on the BIS Quarterly Review, March 2023 (00:39:50)
24 Feb 2023 Media briefing on the BIS Quarterly Review, March 2023

Claudio Borio and Hyun Song Shin summarize the March 2023 Quarterly Review and answer journalists' questions about market developments and the economic outlook. 


In the period covered in the Quarterly Review, investors revised up their projections of central bank terminal rates, reducing the gap between financial conditions and central bank communication.


Special features

Prudential policy and financial dominance: exploring the link

Prudential policy tightening – whether ahead of or during monetary policy tightening – helps to reduce the likelihood of financial stress.


Commodity prices, the dollar and stagflation risk

The coincidence of higher commodity prices and a stronger dollar raises the risk of stagflation.


Covid, central banks and the bank-sovereign nexus

Authors:  Bryan Hardy and Sonya Zhu

Increased sovereign debt and bloated central bank balance sheets reshaped the links between banks and sovereigns after the pandemic.


Global supply chain interdependence and shock amplification - evidence from Covid lockdowns

Firm-level data reveal the slow recovery of global value chain links in some sectors following the pandemic.