SONIA A Touch Firmer, BoE’s Dhingra Sticks To Dovish Side Of Spectrum

SONIA futures are unchanged to 3bp higher through the blues in pre-gilt trade, flattening a touch as core global FI markets tick higher during early London trade.

• A BBC interview with BoE dove Dhingra was run overnight. She stuck to her usual leaning, noting that “the economy's already flatlined. And we think only about 20% or 25% of the impact of the interest rate hikes have been fed through to the economy. So I think that there's also this worry that that might mean that we're going to have to pay a higher cost than we should be paying."
• Elsewhere, local data saw largely in line with exp. GDP & index of services prints for August (accompanied by negative revisions), while the monthly run of production data was on the soft side.
• RICS house price balance data recorded a further deterioration.
• Looking ahead, today will see comments from BoE’s Pill. He will speak on the topic of ‘the new trilemma of macroeconomic policy: future policy responses’