Monday, 17 October, 2022

Some European Central Bank officials considering whether to retroactively change their generous long-term lending rules for banks reckon doing so is legally feasible, according to people familiar with the matter. Inflation of 10% and rapidly rising interest rates have eroded the basis for the existing contracts, which were agreed on when price growth was sluggish and borrowing costs were negative, said the officials, who asked not to be identified as the debate is private. Legal […] Read More

Tuesday, 18 October, 2022

BOE: Views since the new Chancellor:

BOE: Views since the new Chancellor: * Barclays: Look for 75bp in November, 50bp in December to 3.50% by year-end. * Berenberg: Still look for 100bp in November but now look for 50bp in December (from 75bp) to 3.75%. Look for 75bp cuts in H2-23 instead of 100bp to keep end-2023 Bank Rate at 3.00%. * BNP: “Risks skewed towards a 75bp move” (rather than 100bp previously). Revise down terminal rate forecast to 4.50% from […] Read More

Wednesday, 19 October, 2022

UK inflation accelerated more than expected driven by food and

UK inflation accelerated more than expected driven by food and drinks, adding to a cost-of-living squeeze on households. The Consumer Prices Index rose 10.1% in September from 9.9% the month before, matching a 40-year high reached in July, the Office for National Statistics said Wednesday. Economists had expected a reading of 10%. Read More

Thursday, 20 October, 2022

Evans: Rates moving too high could have ‘nonlinear’ impact on economy – Reuters

20-Oct-2022 01:30:00 – EVANS: IF FED PUSHES POLICY RATE MUCH FURTHER THAN PLANNED IT COULD START TO WEIGH ON THE ECONOMY 20-Oct-2022 01:30:00 – EVANS: WORRIED THAT AT SOME POINT RATE INCREASES COULD HAVE “NONLINEAR” IMPACT, WITH BUSINESSES BECOMING MORE PESSIMISTIC 20-Oct-2022 01:30:00 – EVANS: FED “HONING IN” ON THE PROPER LEVEL FOR RESTRICTIVE MONETARY POLICY 20-Oct-2022 01:30:00 – EVANS: FOLLOWING SEPT. CPI STILL SEES A POLICY RATE NEXT YEAR OF 4.5 TO 4.75% RANGE […] Read More

Thursday, 20 October, 2022

Broadbent Says UK Rates May Not Rise as Much as Market Expects

Bank of England Deputy Governor Ben Broadbent said it’s not clear that UK interest rates need to rise as much as markets are betting at the moment. Investors are currently pricing in rates rising to 5% in early 2023, up from as 2.25%. While “the justification for tighter policy is clear” in the face of soaring inflation, demand will slow to some extent anyway, as a result of higher prices, Broadbent said in the text […] Read More

Friday, 11 November, 2022

Banks’ Views post CPI:

Banks’ Views Post CPI: JPM: Overall, Oct CPI supports the idea that we are moving past the firmest period for inflation and that a decent amount of the inflation we have seen over the past year will prove to be temporary or transitory in nature.”For Fed, the latest inflation news should increase FOMC’s comfort with the idea of slowing the pace of tightening at Dec meeting, and we continue to look for a 50bp hike […] Read More

Tuesday, 28 February, 2023

RPT) MNI INTERVIEW: Fed Could Hike More Than Expected-Hoenig

MNI) Washington – (Repeats story first published on February 27) Former Kansas City Fed President Thomas Hoenig told MNI the U.S. central bank might need to raise interest rates more than investors expect because demand remains strong and monetary policy is still loose compared with the rate of inflation. The FOMC will hike rates at least twice more in quarter-point increments, but might need to go even further if the data do not cooperate — […] Read More

Tuesday, 01 October, 2024

Banks Following the crowd/pricing…

{EU} Banks Following the crowd/pricing… * Bank of America: “Now expect back-to-back cuts of 25bp from now until the depo rate is back at 2% in June-25″”We stick to our view that the ECB will cut to 1.50%, but think we now get there by end-25, ie six months earlier”. * “Bigger and deeper cuts are a possibility if growth actually moves lower from here – but that is currently a risk scenario”. * Commerzbank: […] Read More

Friday, 08 November, 2024

Archr News Update

US equities saw the biggest daily inflow in five months on Wednesday, the day Donald Trump was declared winner of the US Presidential election, at $20 billion, according to a Bank of America note citing EPFR Global data. US small caps saw the biggest daily inflow since March at $3.8 billion, a team led by Michael Hartnett writes in a note Financials had the biggest daily inflow on record, at $2.9 billion In the week […] Read More