Thursday, 06 October, 2022

Fed’s Cook Stresses Resolve to Curb Inflation in Debut Speech

Federal Reserve Governor Lisa Cook said she supports the central bank’s policy-tightening path and that further interest-rate increases and a period of policy restriction will likely be needed to bring inflation down. “With inflation running well above our 2% longer-run goal, restoring price stability likely will require ongoing rate hikes and then keeping policy restrictive for some time until we are confident that inflation is firmly on the path toward our 2% goal,” Cook said […] Read More

Tuesday, 11 October, 2022

BOE Adds Linkers to Bond Buying to Stop Market ‘Fire Sale’

The Bank of England was forced to expand its emergency measures to tackle chaos in the bond market, adding inflation-linked debt to its purchases in an effort to stop “fire sale dynamics.” The announcement on Tuesday came on the heels of a severe selloff that saw UK inflation-linked bond yields surging by the most on record. “The beginning of this week has seen a further significant repricing of UK government debt,” the central bank said […] Read More

Thursday, 22 December, 2022

Wishing you a Merry Christmas and the Happiest of New Years.

Wishing you a Merry Christmas and the Happiest of New Years. As we are in a football year, I’ll cut to the immortal words from Sir Alex Ferguson “2022………Bloody Hell”!! Highs and lows and pretty much everything in between, we have seen it all – we’ve laughed, and we’ve cried. Most importantly, we have all gotten through it together and are already looking forward to more next year. We hope you have a wonderful Christmas […] Read More

Tuesday, 10 January, 2023

Timiraos – Jerome Powell Says Bringing Down Inflation Could Fuel Politic

  Jerome Powell Says Bringing Down Inflation Could Fuel Political Opposition   ‘The absence of direct political control over our decisions allows us to take…necessary measures,’ says Fed chair   By Nick Timiraos Jan. 10, 2023 9:00 am ET   https://www.wsj.com/articles/jerome-powell-says-bringing-down-inflation-could-fuel-political-opposition-11673358963   The Federal Reserve is strongly committed to lowering inflation even though interest-rate increases to restrain economic growth could fuel political blowback, said Chair Jerome Powell.   “Price stability is the bedrock of a […] Read More

Friday, 27 January, 2023

Euro rates are moving. Is your hedge moving with them?

Fyi – a nice chart below to show how ESTR Futures are building. Ashley Joye (ARCHR LLP ) Subject: FW: Euro rates are moving. Is your hedge moving with them?         Ashley JoyeManaging Partner T +44 (0)20 7422 2975 M +44 (0)7796 308 391 E ashley.joye@archr.com 49 Carnaby Street,London, W1F 9PYUnited Kingdom ARCHR.COM Read More

Wednesday, 01 February, 2023

EURO PMI READS: nothing holding back the ECB hikes, € and Bunds higher:

EURO PMI READS: nothing holding back the ECB hikes, € and Bunds higher: Overall: Inflation cooling at the input level but output charges continue to climb, partly on working through higher cost inventories as well as costs of labour leading to sticky inflation concerns. New orders continue fall generally although pockets of improvement and slower rates of decline lead to better outlook optimism. Lagarde getting the green light to continue to press against embedded cost […] Read More

Thursday, 02 February, 2023

boe banks views

In Brief: • Majority of analysts expect a 50bp rate hike in February; Minority expect 25bp • If the Bank hikes by 50bp, voting likely to be 6-1-2 (6 for 50bp, 1 for 25bp, 2 for unch) or perhaps 7-2 • New quarterly MPR (Monetary Policy Report) to be published. Analysts expect: o Increase in GDP growth in 2023 (shallower recession) o Inflation lower in 2023 but 2024 and 2025 revised closer to 2% level […] Read More

Thursday, 02 February, 2023

ECB – Bank views ITC

In Brief: • Analysts unanimously expect a 50bp hike in February • Most analysts think the ECB will encourage expectations of another 50bp in March • A minority of analysts expect the ECB to step down the pace to 25bp in March • OIS markets are pricing similar expectations: 50bp for Feb and a further 45bp in March • Markets are pricing in 141bp of hikes by end-2023, 34bp more than after December’s meeting • […] Read More