BOE’s Bailey: We expect inflation to come down rapidly this year
We have a very tight labour market (Bailey) There is substantial further monetary policy tightening still to come (Pill) There is no room for complacency (Pill) Anticipates an extended period of weakness in UK economic activity (Pill) Economic theory shows inflation uncertainty should be met with more forceful action (Haskel) There isn’t anything new here […]
Fed's Powell: We didn't expect the jobs report to be this time
<ul><li>Labor market is extraordinarily strong</li><li>Sometimes just I get data the night before it's released, but just me</li><li>Message from last week's FOMC is that disinflationary process has begun but has a long way to go</li><li>Repeats that ongoing rate increases will be appropriate, still have not reacted sufficiently restrictive level</li><li>Vote on monetary policy takes place around noon […]
Bank of England Pill: I expect we will proceed with QT over the coming years
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Morgan Stanley expect the Federal Reserve to pause at the March meeting – ‘disinflation’
At his press conference following the Federal Open Market Committee (FOMC) statement on Wednesday Federal Reserve System Chair Powell mentioned the “disinflation” word 13 times. After the December FOMC meeting, at his presser, Powell said that word, let me count, zero times. For those divining nuance from the words of a Fed Chair this is […]
Expect A Dollar Breakout and Potentially a S&P 500 Trend Next Week with FOMC On Tap
S&P 500, US Dollar, FOMC, ECB and BOE Rate Decisions, Earnings and Growth Talking Points: The Market Perspective: S&P 500 Eminis Bearish Below 3,900; USDJPY Bullish Above 132.00 The S&P 500 and Nasdaq 100 seemed to earn technical breaks in favor of a reversal of 2022’s bearish trend, but conviction was still in short supply […]
ECB’s Knot: “Expect us to raise rates by 0.5% in February and March … to not be done”
Dutch central bank governor and hence a European Central Bank Governing Council member, Klaas Knot, gave two separate interviews on Sunday. He said, when speaking with Dutch broadcaster WNL: “Expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow […]
ECB's Holzmann: I expect multiple rate hikes of 50 basis point at least in the 1H of 2023
<p>ECBs Holzmann is speaking to Austrian newspaper Die Presse and says:</p><ul><li>I expect multiple rate hikes of 50 basis points, at least in the 1H of 2023</li><li>Core inflation is above 5%, which is 2 1/2 times our target</li><li>there could be rate hikes if headline inflation has fallen significantly, but core inflation has not.</li><li>I am reluctant to […]
PBOC MLF liquidity injection today – unchanged rate expected (but some expect a small cut)
Later this week from the People’s Bank of China we’ll get the loan prime rate setting: Ahead of that today we’ll get a medium term lending facility (MLF) rollover: 700 billion yuan of this medium-term lending debt is maturing. according to Reuters polling 12 analysts expect the PBOC rollover the 700 billion yuan, 10 expect […]
Don’t expect Yen to weaken much further
Former Bank of Japan (BoJ) board member Sayuri Shirai said on Wednesday, “US interest rates are declining so don’t expect the Yen to weaken much further.” Further comments “Excessive strength in dollar likely to be corrected.” “Households and companies’ inflation expectations are extremely high but market forecasts are below 2%, not much change in inflation […]