Taper Timing, Denmark Green Debt, Digital Currencies: Eco Day

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Welcome to Wednesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• Federal Reserve policy makers are expected to announce this week that they will start scaling back their massive asset-purchase program amid greater concern over inflation, economists surveyed by Bloomberg said
• U.K. Chancellor of the Exchequer Rishi Sunak has given a personal guarantee that, short of a crisis, debt will shrink as a share of the economy from 2024 onward
• Central banks are pledging to incorporate climate change into policy decisions and mandates, potentially affecting trillions of dollars in financial assets, and some are considering penalties on collateral linked to emissions
• Poland is expected to raise interest rates for a second month after central bankers surprisingly abandoned a pledge to keep borrowing costs on hold at least into next year. The only question is by how much.
• A network among multiple central bank digital currencies could create efficiencies in the tens of billions of dollars and benefit all participants, according to a new report
• China unexpectedly boosted the injection of short-term cash into the banking system as a record amount of policy loans come due and Premier Li Keqiang flags growth challenges
• Denmark’s finance minister signaled the country, among the European Union’s most ambitious member states for climate goals, is edging closer to issuing its first green debt
• Business activity in the United Arab Emirates rose to the highest level in more than two years last month, helped in part by an influx of tourists drawn to Dubai’s Expo 2020 event
• The Bank of England could become the first major central bank to lift interest rates since the start of the pandemic -- but would that tank the housing market?
• The world’s largest shipping hubs are suffering elevated levels of congestion as containers pile up at seaports from Singapore to Piraeus
• The inflation spike that the Bank of Russia thought would be temporary just won’t end, leading economists to expect a larger rate hike next month

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