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FPC Statement / Minutes due at 10:30BST

BOE
  • The Bank of England's Financial Policy Committee will release its Statement and Minutes this morning at 10:30BST. We don't expect this to be an event that will have an instant market reaction but nevertheless there could be some important medium-term indicators in here.
  • First, what is the FPC's assessment of the relative fragility of household and corporate finances. For example, how many more stressed economic actors are there due to the increases in Bank Rate and how is this expected to evolve as monetary policy continues to transmit through the economy.
  • Are there any financial stability concerns surrounding the size of the Bank's balance sheet (with QT and TFSME having led to lower levels of reserves at the central bank). And are there any concerns from the FPC about liquidity in the gilt market. Remember that it is the Bank's Executive (not the MPC) who decide on the APF sales paramaters including the buckets - and if the FPC flags up concerns surrounding liquidity at the long-end of the gilt curve it could increase the arguments to modify those buckets when the APF sales schedule for Jan-Mar is published.
  • Will there be any further details on the potential new tools that Hauser outlined recently at the MNI Connect event?
  • Will there be a chance to the countercyclical buffer (CCyB)? This is not expected.

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