FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

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

Ramsden: Support a careful increase to the pace of QT

BOE
  • Ramsden reiterates that QT should run in the background - and Bank Rate is the primary instrument.
  • Ramsden notes that he thinks the pace of QT can be increased: "When we decided on the initial £80 billion pace of unwind last September; we had no direct evidence on how sales would affect financial markets. The MPC incorporated this uncertainty into its initial decision on pace. From my perspective, I saw this as aiming under somewhat in order to incorporate a degree of ‘learning by doing’. The MPC has learned more about the economic and market impact of QT since then, with reassuring signs so far."
  • "The pace of gilt sales from the APF into the market has generally been successfully absorbed by the market to date... Given that, it seems reasonable for sales to continue at this pace for the next twelve-month period."
  • "when making its decision for the next twelve-month period, the MPC will be conscious that as well as the £80 billion reduction in the stock of gilts this year, the reduction in the overall APF over this period included the additional successful sale of the £20 billion corporate bond portfolio... the total decline in the APF in the year from last October will amount to some £100 billion."
  • "Taken together, for me personally, these factors support a carefully considered increase in the pace of reduction in the stock of gilts in the twelve months ahead reflecting: the completion of the CBPS unwind; the reduced need for aiming off for learning; and evidence so far on marketing functioning. I emphasise careful –like the MPC I want QT to set a gradual and predictable pace for unwind and to let it operate in the background, after all. "
Homepagemarkets-real-timeBulletMarketsFixed 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.