BOE: Details on next week's change in communication format
Oct-31 13:30
- The Bank of England Monetary Policy Committee's quarterly policy decision communications will include rules-based policy rate paths, reintroduce scenarios and include more detailed inputs to monetary policy decisions starting from the Nov 6 meeting, officials said.
- As announced in Huw Pill's speech (see our bullet "Pill: MPR and Minutes Formats to Change from November", 17 October), Bank officials confirmed that as of next week, the MPC will publish a slimmed down Monetary Policy Summary at every meeting, alongside minutes which will include individual member opinions running to up to around 200 words each. The overview summary of where the committee sits as a whole will still be included.
- The BOE will also publish alternative scenarios and alternative projections to the Central Projection -- still based on market rates -- illustrating "how things might turn out differently from the central case in ways that reflect the most pressing policy concerns right now". The MPC will no longer publish forecasts on a Constant-Market rate basis, a metric that few in the Bank use.
- There will also be some analysis of alternative indicative paths for interest rates attached to both the alternative scenarios and the central projections, which will be numerical rather than just qualitative, officials noted. However, while the rate paths will be lines on a chart, they will not be dot plots and will not be MPC forecasts. The rate paths will not be determined by the MPC, but will be based on policy rules derived from the economic literature as set out in papers published in mid-October.
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EURIBOR OPTIONS: Ratio Put Spread Seller
Oct-01 13:29
ERZ5 98.12/98.00ps 1x2, sold at 6.5 in 7k
EQUITIES: US Cash Opening Calls
Oct-01 13:27
SPX: 6,667.3 (-0.3%); DJIA: 46,340 (-0.1%/-58pts); NDX: 24,594.3 (-0.3%).
EQUITIES: European Equities are edging higher
Oct-01 13:21
- While Equities may have had a lesser move compared to the Likes of Bond Futures moving higher and some selling of the Dollar post the US ADP miss, the European Estoxx Futures (VGZ5) targets the next resistance of 5575.00, the March high
- Cash Desks will be paying attention at the record high in SX5E situated at 5568.19.
- The Banking Index (SX7E) is still short of the August high at 237.32, but the next main resistance is still eyed at 242.85, the 2009 high.
