MNI BRIEF: Powell Says US Is 'Far' From Fiscal Dominance

MNI BRIEF: US Firms Wary of Tariff-Related Inflation - Fed

MNI: US NOV FINAL SRVCS PMI 56.1 (FLASH 57.0); OCT 55.0

MNI NBP WATCH: Rates Held, Outlook Unchanged

MNI BRIEF: Barkin Aims For 'Somewhat Restrictive' Fed Rates

MNI China Daily Summary: Wednesday, Dec 4

EZ/UK Bond Supply Calendar: Spain, France Auction, UK Tender

US EIA: CRUDE OIL STOCKS EX SPR -5.07M TO 423.4M NOV 29 WK

MNI: US ISM NOV SERVICES COMPOSITE INDEX 52.1

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bank of America View Following the BOE MPR

BOE
  • BofA point to the divergence between the MPR which suggested "that the BoE's next move would be monetary tightening" and Governor Bailey's downbeat press conference noting "We are left without a clear idea of what the BoE thinks or what its plan is. It seems they are caught in the headlights."
  • BofA note "it seems to us the BoE rejects a risk management approach. Rate setters choose to wait rather than base policy on the balance of risks. So we see the BoE even further behind the curve today, and in greater contrast to most other central banks around the world who are more concerned about potential future inflation undershoots. We think the BoE will need to be even more aggressive to 'catch up' later. This is why we see the probability of negative rates approaching 50%."
  • BofA continues to look for GBP100bln more QE, 10bp Bank Rate cut to 0% and TFS rate cut "but the risks have skewed more towards delay after today. It may require the BoE waiting until February, by which time the evidence against a 'V' could be greater than in November, for rates setters to change their mind."
  • On QE pace, BofA had looked for GBP4.2bln/week rather than the GBP4.4bln announced as hey had assumed QE purchases would continue for a further week in December.
BulletMarketsFixed Income BulletsForeign Exchange Bullets
BulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.