BIS Quarterly Review, March 2023
Perceptions of the future path of monetary policy shaped markets as central banks continued their fight against inflation.
Claudio Borio and Hyun Song Shin summarize the March 2023 Quarterly Review and answer journalists' questions about market developments and the economic outlook.
Overview
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.
More...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
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.