STIR: Repo Reference Rates

BBDXY to fresh session lows, cross-market yield differentials are eyed, with short-end to belly benchmark U.S. Tsy yields moving to fresh session lows in recent trade.

• "The economy is moving in the right direction to return inflation to the 2% target, but our job isn’t done. The question I am focused on is whether there is evidence of more persistent inflationary pressures which means we may need to tighten further. Regardless, monetary policy still needs to be restrictive for an extended period of time to keep pushing down on inflation and to return it sustainably to target."
• "I will continue to use a range of evidence – incorporating soft data, such as surveys, as well as real world conversations with businesses and others – to inform my view of where the economy is heading. As part of that, I will be focused on signs that the loosening in the labour market is accelerating, and wage growth is falling more sharply than expected, for example through timely surveys and real world reports from the Bank’s network of Agents."
• "I will approach each vote humbly and pragmatically, with no pre-determined policy path in mind. But given what we know now, I can say that it will be important for monetary policy to be restrictive for an extended period in order to return inflation sustainably to the 2% target in the medium-term."

• A total of GBP750mln had been available.
• This leaves GBP12.080bln of the gilt in issue.