With regard to inflation, the Harmonized Index of Consumer Prices is forecast to peak in the fourth quarter of this year, with annual inflation reaching an average of 2.2% this year, supported by temporary factors, such as strong base effects caused by energy inflation and the German VAT rate reversal, and an increase in input costs related to supply bottlenecks.
And, just like interlinked faster payment systems, a solution based on interlinked CBDCs would still rely on private actors to provide attractive front-end solutions. 5 Closing remarks All of this shows that, in order to enhance cross-border payments, we need cooperation, not only between banks and central banks, but also with other players as well. Regulators will have to coordinate efforts to harmonise regulation.