-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI: BOE Hikes 50bps; Presses Ahead With Gilt Sales
The Bank of England Monetary Policy Committee split three ways over its decision to hike Bank Rate by 50 basis points at its September meeting but members were united in voting to start active gilt sales.
Three members, Catherine Mann, Deputy Governor Dave Ramsden and Jonathan Haskel all voted for a 75 basis point hike, with newcomer Swati Dhingra backing only a 25 basis point increase. They all voted in support of starting active gilt sales in line with the schedule set out in August, cutting the stock of gilt purchases by GBP80 billion over the next 12 months, with some GBP40 billion coming through active gilt sales.
The MPC's approach is clear, to use Bank Rate as the active policy instrument with sales ticking away in the background with a high threshold to changing the sales schedule.
GILT SALES
The MPC reaffirmed that it would not vote at each policy meeting on the target level for its stock of gilts and that "there would be a high bar for amending the planned reduction."
On current plans, gilt holdings will be cut to GBP758 billion over the next 12 months.
The detailed market notice set out sales for Q4, with fifteen auctions planned for GBP580 million per auction and GBP8.7 billion in total, distributed evenly across short, medium and longs.
ENERGY PRICE CAP
The MPC took into account the pre-announced energy price cap, which Bank economists assessed would lower the inflation peak in October to just below 11% but there was no discussion in the minutes of the new fiscal package due to be published Friday.
The MPC said it would look at its impact in its November forecast round but that the Energy Price Guarantee (EPG), capping fuel bills for two years, would in itself "add to inflationary pressure in the medium term."
For the three members backing a hike, faster tightening now was justified to reduce more prolonged tightening later and the government energy price policy would add to demand pressure.
The five backing fifty saw the case for a forceful policy response and agreed that the EPG added to inflationary pressure down the track but noted the November forecast round would give them time for a full assessment and that lower near term inflation should rein in expectations.
Debutant Dhingra did consider a 50bps hike, but held back on the growth outlook.
In its economic assessment the MPC saw evidence of further weakness in activity, with Bank Agents reporting that firms anticipated consumer spending peaking in Q3.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.