The Bank of England held at 3.75%. The bond plan is the other part I'm reading.
The September 17 release confirms a 6-3 vote to keep Bank Rate unchanged. The three dissenters wanted 4%. That answers the vote question in my morning preview.
Alongside it, the committee unanimously agreed a multi-year plan for reducing its monetary-policy gilt portfolio. The planned average reduction is GBP46 billion a year, including GBP20 billion of annual sales alongside bonds maturing. Those figures aren't two amounts to add together.
My takeaway: a rate hold doesn't mean every part of the policy package stood still. I want the interest-rate decision and the balance-sheet plan side by side before calling this an easing or tightening story.
For my crypto notebook, this belongs in the wider funding backdrop. It doesn't tell me that BTC or ETH must move in one direction, and I won't attribute a price move to this announcement without checking the timing and other news.
What would you examine first to judge this package: the rate vote or the bond-reduction plan, and why?
#Macro #MonetaryPolicy
The September 17 release confirms a 6-3 vote to keep Bank Rate unchanged. The three dissenters wanted 4%. That answers the vote question in my morning preview.
Alongside it, the committee unanimously agreed a multi-year plan for reducing its monetary-policy gilt portfolio. The planned average reduction is GBP46 billion a year, including GBP20 billion of annual sales alongside bonds maturing. Those figures aren't two amounts to add together.
My takeaway: a rate hold doesn't mean every part of the policy package stood still. I want the interest-rate decision and the balance-sheet plan side by side before calling this an easing or tightening story.
For my crypto notebook, this belongs in the wider funding backdrop. It doesn't tell me that BTC or ETH must move in one direction, and I won't attribute a price move to this announcement without checking the timing and other news.
What would you examine first to judge this package: the rate vote or the bond-reduction plan, and why?
#Macro #MonetaryPolicy
