Interbank Market News Scan: All’s quiet on the central bank front …

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Interbank, Bank of EnglandBen Broadbent, Deputy Governor of the Bank of England for Monetary Policy, will provide testimony before Parliament’s Environment, Food, and Rural Affairs Committee on 9 November 2021 at 3:30 pm, London time.  Dr Broadband has specific responsibility for the BOE’s monetary policy, including monetary analysis, banknotes, and data and analytics transformation.

Interbank, European Central Bank. Philip Lane, a member of the executive committee of the European Central Bank reiterates expectation of inflation slowing in the middle of 2022 and that patience is needed during this temporary inflationary period. Signals no rush in tightening financing costs, tapering asset purchases, or raising interest rates. https://www.ecb.europa.eu/press/inter/date/2021/html/ecb.in211108~c270ad5bc6.en.html

Interbank, Reserve Bank of New Zealand.  In its latest news release (3 November 2021), the Reserve bank of New Zealand provides insights into monetary policy during a pandemic and impact of inflation on asset prices.

Interbank, Federal Reserve.  Richard Clarida, vice-chair of the Board of Governors of the Federal Reserve, today will participate in a panel discussion on the Fed’s flexible average inflation targeting policy at 9:00 am EDT. Under FAIT, the Federal Reserve seeks inflation that averages 2% over a time frame that is not formally defined.  FAIT aims at avoiding dampening economic growth via a premature increase in the federal funds rate, the rate banks charge each other for overnight loans.    

Traders should contact their brokers for more information on how foreign exchange rates may react to events described in the above blog post.

Disclaimer: The above is provided for informational purposes and should not be construed as financial or legal advice or as creating an agreement to provide financial or legal advice.

Alton Drew

8.11.2021

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