MNI BRIEF: Banks Currently Funding Dollars In Market - Buba

Take-up of the daily USD swap lines put in place by the ECB and other central banks in the wake of the SVB and Credit Suisse crises has so far been "very limited," Bundesbank Executive Board member Sabine Mauderer said in a speech on Wednesday, indicating that banks can readily meet USD funding needs in the market.

The transmission of monetary policy measures through the credit channel is beginning to be seen, nevertheless "it remains to be seen if and to what extent the recent tensions in parts of the banking sector will lead to a further tightening of financing conditions."

However structurally higher inflation may be "here to stay," she warned, as a result of de-globalisation, decarbonisation of the economy, and demographic change.