AVN 64.74 Decreased By ▼ -0.26 (-0.4%)
BAFL 31.23 Increased By ▲ 0.08 (0.26%)
BOP 4.82 Increased By ▲ 0.11 (2.34%)
CNERGY 3.86 Decreased By ▼ -0.02 (-0.52%)
DFML 14.11 Increased By ▲ 0.41 (2.99%)
DGKC 41.69 Increased By ▲ 0.42 (1.02%)
EPCL 46.36 Decreased By ▼ -0.33 (-0.71%)
FCCL 11.41 Decreased By ▼ -0.01 (-0.09%)
FFL 5.06 Increased By ▲ 0.02 (0.4%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 9.92 Decreased By ▼ -0.03 (-0.3%)
HUBC 64.23 Increased By ▲ 0.13 (0.2%)
HUMNL 5.61 Decreased By ▼ -0.04 (-0.71%)
KAPCO 27.84 Increased By ▲ 0.04 (0.14%)
KEL 2.15 Increased By ▲ 0.02 (0.94%)
LOTCHEM 24.52 Increased By ▲ 0.22 (0.91%)
MLCF 21.75 Increased By ▲ 0.35 (1.64%)
NETSOL 84.19 Decreased By ▼ -0.01 (-0.01%)
OGDC 87.30 Decreased By ▼ -0.64 (-0.73%)
PAEL 10.95 Increased By ▲ 0.05 (0.46%)
PIBTL 4.24 Increased By ▲ 0.06 (1.44%)
PPL 76.63 Decreased By ▼ -1.07 (-1.38%)
PRL 13.69 Increased By ▲ 0.07 (0.51%)
SILK 0.90 Increased By ▲ 0.01 (1.12%)
SNGP 41.52 Decreased By ▼ -0.41 (-0.98%)
TELE 5.95 Increased By ▲ 0.08 (1.36%)
TPLP 15.77 Decreased By ▼ -0.01 (-0.06%)
TRG 111.25 Decreased By ▼ -1.05 (-0.93%)
UNITY 13.92 Decreased By ▼ -0.03 (-0.22%)
WTL 1.14 Increased By ▲ 0.01 (0.88%)
BR100 4,046 Decreased By -1.8 (-0.05%)
BR30 14,434 Decreased By -33.1 (-0.23%)
KSE100 40,620 Decreased By -53.1 (-0.13%)
KSE30 15,170 Decreased By -20 (-0.13%)
Follow us

PARIS: US Federal Reserve chief Jerome Powell said Friday it was not the central bank’s role to set climate policy, a stance rejected by European counterpart Christine Lagarde who warned that “the planet is burning”.

“We are not and we do not seek to be climate policy makers as such. We have a very specific mandate and precious independence,” Powell told a videoconference hosted by the Bank of International Settlements (BIS) and France’s central bank.

“We should avoid trying to fill in public policy where governments haven’t done so yet, that’s not up to us,” the head of the US central bank concluded.

Lagarde did not agree.

“Our planet is burning and we, central bankers, could look down at our mandate and pretend that it is for others to act. And that we should simply be followers, I don’t think so,” Lagarde said.

“I believe that if we did, we would be failing on our mandate and that we would be missing in action,” she added.

Chinese counterpart Yi Gang agreed that “our planet is in danger”, and added: “The most important thing we are doing is to tell the general public how important green finance and climate change risk is.”

Lagarde, who has made climate protection financing an ECB priority, referred to one of its key concerns when she said: “Climate change could impair monetary policy transmission because it is likely to induce financial instability if it is not taken into account.”

The bank would be “squarely in our mandate when we guide banks on climate related risks as well as environmental risks,” she added.

Powell steadfastly sought to keep the Fed out of the fray, however, saying that “climate change is not something we directly consider in setting monetary policy.”

He nonetheless acknowledged that “there is no question that climate change has the potential to affect the structure of the economy over time.

“Central banks clearly can play an important role in building data and analysis to understand the macroeconomic consequences of climate change, to qualify the risks for financial system through scenario analysis for example.”

Gang agreed that central banks could play an informative role “so that households, general public, firms, enterprises and also ordinary people understand the very implication of climate change.”

Comments

Comments are closed.

Powell, Lagarde split over central bank role in climate policy

Former interior minister Sheikh Rashid arrested

Jan food prices rise 43pc YoY

High inflation, low growth and falling forex: Country confronted with variety of challenges: MoF

IMF revises inflation rate upward

KE CEO directed to appear before Senate panel

KE files four tariff pleas with Nepra

Officers dealing with IMF exempted from meetings at PMO

PM to open K3 nuclear power plant today

General election not possible before Oct?

Mushtaq appointed DG (Debt)