MNI China Daily Summary: Thursday, March 13

MNI BRIEF: China Has Been In Communication With U.S. On Trade

MNI BRIEF: China To Enhance Customs Clearance

MNI INTERVIEW2: Policy Lag Justifies Faster CNB Easing - Holub

MNI BRIEF: China Consumer Satisfaction Up

MNI: PBOC Net Drains CNY68.6 Bln via OMO Thursday

EZ/UK Bond Supply Calendar: SlovGB Auction Monday

US EIA:NAT GAS STORAGE -62 BCF TO 1,698 BCF MAR 07 WK

MNI: US FEB FINAL DEMAND PPI +0.0%, EX FOOD, ENERGY -0.1%

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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BOE: Pill: Need "maintain some restriction"; settlements higher than few months

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Bank of EnglandCentral Bank NewsCEEMEABulletUKMarketsFixed Income BulletsForeign Exchange Bullets
  • Pay survey has "come out at 3.7% which is substantially lower [than last year]. And I think that is evidence that there is an ongoing and still successful, if you like, this inflation process in underlying domestically generated inflation in the UK, carrying on through the course of the coming year in expectation. And it's that progress with trend disinflation in the direction of achieving the 2% inflation target that has allowed the MPC to remove some of the restriction In its monetary policy stands by cutting bank very yesterday by 25 basis points. So I think that monetary policy restriction has played an important role in maintaining this trend, this inflation, after the inflation impacts of the pandemic and the invasion that we've discussed on many occasions previously in this session. But what I think is important to say is that that restrictive stance of monetary policy has helped contain second round effects in wage, price, cost dynamics, but it also helped to stabilize longer term inflation expectations in a manner that serves this trend disinflation process continuing...."
  • "That 3.7% number is therefore higher than we expected a few months ago. And if you like, the pace of disinflation that we've been discussing over the last few quarters, and maybe not quite as strong as that we have previously thought. And I think that means that we're not in a situation where we can clear declare job done. There is still a need to maintain some restriction in the monetary policy stance to squeeze out the amazing remaining persistent domestic inflation pressures that keep us above the inflation target of 2%."
  • "That is what has led us to associate that as the MPC, that cuts at 25 basis points in bank rate, with the language that while further cuts would be expected as disinflation proceeds the slower than expected pace of disinflation means that we need to continue to be gradual in our removal of accommodation, removal of restriction, and careful in how we proceed with that as the uncertainty and risks to the disinflationary process"
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  • Pay survey has "come out at 3.7% which is substantially lower [than last year]. And I think that is evidence that there is an ongoing and still successful, if you like, this inflation process in underlying domestically generated inflation in the UK, carrying on through the course of the coming year in expectation. And it's that progress with trend disinflation in the direction of achieving the 2% inflation target that has allowed the MPC to remove some of the restriction In its monetary policy stands by cutting bank very yesterday by 25 basis points. So I think that monetary policy restriction has played an important role in maintaining this trend, this inflation, after the inflation impacts of the pandemic and the invasion that we've discussed on many occasions previously in this session. But what I think is important to say is that that restrictive stance of monetary policy has helped contain second round effects in wage, price, cost dynamics, but it also helped to stabilize longer term inflation expectations in a manner that serves this trend disinflation process continuing...."
  • "That 3.7% number is therefore higher than we expected a few months ago. And if you like, the pace of disinflation that we've been discussing over the last few quarters, and maybe not quite as strong as that we have previously thought. And I think that means that we're not in a situation where we can clear declare job done. There is still a need to maintain some restriction in the monetary policy stance to squeeze out the amazing remaining persistent domestic inflation pressures that keep us above the inflation target of 2%."
  • "That is what has led us to associate that as the MPC, that cuts at 25 basis points in bank rate, with the language that while further cuts would be expected as disinflation proceeds the slower than expected pace of disinflation means that we need to continue to be gradual in our removal of accommodation, removal of restriction, and careful in how we proceed with that as the uncertainty and risks to the disinflationary process"