BOE RATE SETTER: UK CONTRACTION EXAGGERATED BY STATISTICAL ANOMALIES
— MPC Member Broadbent suggests inflation has fallen by less than feared By Laurie Laird LONDON (MaceNews) – The UK economic contraction may have been exaggerated by the statistical measurement of public services, according to a Bank of England official, who also downplayed sustained below-target inflation in Britain. “Part of the drop in GDP reflects an […]
FED’S BOSTIC: READY TO ‘RECALIBRATE’ POLICY IF ECON STRONG BUT DON’T SEE 2021 HIKES
By Steven K. Beckner (MaceNews) – Atlanta Federal Reserve Bank President Raphael Bostic said Monday he would be willing to consider “recalibrating” the Fed’s monetary policy stance if the economy proves stronger than expected, but said he can’t envision raising the federal funds rate from near zero until next year at the earliest. Bostic, a […]
BOE OFFICIAL MAKES FORCEFUL CASE FOR NEGATIVE UK INTEREST RATES
—Tenreyro Sees Diminishing Benefit of QE as UK Output Contracts Sharply By Laurie Laird LONDON (MaceNews) – A top Bank of England rate setter forcefully endorsed the case for sub-zero interest rates, raising questions over the continued benefits of quantitative easing with UK output in the midst of another severe contraction. “My overall assessment is […]
DATA PREVIEW: RETAIL SALES AND INFLATION MEASURES
WASHINGTON (MaceNews) – Economic data in the week ahead includes the December retail sales report, along with the two major inflation measures, the CPI just a week from Inauguration Day and the PPI but market participants are unlikely to pay much attention. The major stock indexes were propelled back into record territory Friday, in part […]
BANK OF ENGLAND’S BAILEY: PREPARED TO FOREGO EU FINANCIAL SERVICES AGREEMENT ‘IF PRICE TOO HIGH’
— BoE Governor Bailey confirms that Brexit preparations assumed no equivalence between UK and EU financial services — Bank continuing technical assessment of negative rates, to publish results in February By Laurie Laird LONDON (MaceNews) — The UK’s top central banker is prepared to walk away from a financial services agreement with the European Union […]
ITALY TO SELL MORE USD-DENOMINATED BONDS IN 2021; NEW ‘GREEN’ SECURITIES – SOURCES
By Silvia Marchetti ROME (Mace News) – Italy’s government aims to issue more U.S. dollar-denominated bonds this year alongside new green bonds and retail securities aimed at supporting pandemic measures, according to ruling coalition sources. The goal is to keep diversifying the investor base through new issuances in foreign currencies both in the Global and […]
EVANS: MON. POLICY WELL POSITIONED NOW; DECIDE IN SPRING ABOUT MORE QE
Can Adjust Pace, Duration of Bond Buys If Decide Need More Accommodation Not Concerned About Rising Bond Yields If Reflect Stronger Recovery Don’t Raise Funds Rate Until Inflation Overshoots 2%, Averages 2% By Steven K. Beckner (MaceNews) – Chicago Federal Reserve Bank President Charles Evans suggested Monday that, as far as he’s concerned, it would […]
DATA PREVIEW: PERSONAL INCOME, REVISED GDP AND MUCH MORE
WASHINGTON (MaceNews) – It’s time for Christmas already, and the holiday and the fact Christmas Eve is now a federal holiday as well has rearranged some of the week’s data reports. Yet with the possible exception of the weekly claims report, now coming Wednesday morning, very little if any of the week’s data is expected […]
BOJ EXTENDS ASSET BUYING, SPECIAL FUNDING OPS UNTIL SEPT 2021 TO FIGHT COVID DRAG; TO REVIEW EASING TOOLS
By Max Sato (MaceNews) – The Bank of Japan Friday offered an early Christmas gift by extending the period of increased financial asset purchases and special funding operations aimed at promoting more lending to cash-strapped small businesses by six months until the end of September 2021. After a regular two-day policy meeting, the bank’s nine-member […]
BANK OF ENGLAND LEAVES POLICY UNCHANGED, BUT EXTENDS LENDING SCHEME
—MPC Hints at Symmetric Stance on Inflation Target, Willing to ‘Tolerate’ Inflation Overshoot By Laurie Laird LONDON (MaceNews) – The Bank of England left its main policy tools on hold after its latest rate-setting meeting on Wednesday, but extended the time frame of its supplemental lending scheme and hinted at a more symmetrical approach to […]