Tag Archives: Bank of England
FX Daily Strategist: US
– Geopolitical tensions not yet systemically hurting markets; We stay USD bearish Markets are holding in well in holiday-thinned trading with Japan bourses outperforming following the rally up in USDJPY to a two week high.
FX Daily Strategist: Europe
– Geopolitical tensions not yet systemically hurting markets; We stay USD bearish Markets are holding in well in holiday-thinned trading with Japan bourses outperforming following the rally up in USDJPY to a two week high.
ECB rate cut in the pipeline?
RISK ON IS BACK. Better than expected US data yesterday boosted stocks (S&P 500 +0.4%) offsetting Chinese growth concerns. Asian stock markets are extending the rally in lack of any market moving data and news releases overnight (Nikkei +1.1%).
Draghi talks tough, but Euro hits airpocket on lack of specifics
Draghi unleashed a string of firm-sound rhetoric to open the ECB press conference, touching on a number of key areas, but the lack of “real action right now” has the market in a big knee-jerk disappointment.
Bank of England expands the Asset Purchase Facility
As SEB and the market expected, BOE left rates on hold today at 0.5% but chose to expand the Asset Purchases Facility by GBP 50bn to 375bn.
EU policy support delivered – implementation risks weigh
While the EU Summit produced relatively far reaching results, their implementation remains uncertain. Positively, the vicious circle between state and bank risk will be at least partly restricted once the ESM becomes fully operational and EU banks can be recapitalized directly from common rescue funds.
BOE Minutes (Jun): Further QE at the July meeting a done deal
The immediate decision: At the June meeting the MPC somewhat surprisingly voted 5-4 for keeping the target for the asset purchase facility (APF) unchanged at GBP 325bn compared to expectations for a 7-2 vote for an unchanged target. More surprisingly governor King was among those members arguing for an expansion of the asset purchase facility […]
UK MPC’s 5-4 split suggests additional QE in July more likely
The MPC’s June policy decision was unexpectedly close, with four committee members, including Governor King, voting for further QE. Sir Mervyn, alongside David Miles and Adam Posen, voted for a further £50bn in asset purchases, while Paul Fisher called for £25bn.
Ahead of the BOE rate and asset purchase
BOE: Ahead of the BOE rate and asset purchase facility decision on Thursday analyst expectations are below: * Citi expect no change in rate but extra Stg50bln in QE to Stg375bln.
Bank of England will probably follow ECB’s lead and do nothing
As I pointed out on the 23rd May, the minutes of the last Bank of England’s (BOE) Monetary Policy Committee (MPC) meeting showed they had their collective ‘finger on the trigger’ to introduce more Quantitative Easing.
BOE Inflation Report
BOE Inflation Report: * CPI Seen Around 1.6% In 2 Years; 1.8% In 3 Yrs * BOE Inflation Forecast Implies Scope For Further QE * Sees Rates At 0.6% In Q2 2013; 1.0% By Start 2015 * Growth Seen Subdued In Near Term, Then Gradual Recovery * But Eurozone Seen A ‘Significant Threat’ To Rceovery […]
The Bank of England Inflation Report
The Bank of England Quarterly Inflation Report is due at 0930GMT with Governor Mervyn King leading the usual press conference. The central forecasts in the Inflation Report are expected to be close to policy neutral, with analysts expecting the probability of inflation coming in above or below the 2.0% target being put at close to […]