Interbank Market News Scan: I expect that the GBP-USD will continue inching up

As of 10:03 am EST, I haven’t seen any news out of the Bank of England discussing modifications to findings in its August monetary policy report.  The current bank rate set by the Bank of England is 0.1% with a target rate of inflation at 2.0%.  The Bank of England currently purchases GBP895 million in government bonds in an attempt to keep borrowing rates low for consumers and businesses. 

The Bank of England expects inflation to continue rising over the Bank’s current 2.0% target for the next two years before falling back to the target.

OANDA reports a .41% increase in the GBP-USD exchange rate between 30 August and 7 September with an exchange rate of 1.3839 as of 10:03 am EST.  As of 10:17 am EST, Reuters reports an exchange rate of 1.3780 while Bloomberg reports an exchange rate of 1.3787.

There is a hearing scheduled at 11:00 am EST on 8 September 2021 to discuss the Bank of England’s August monetary policy report.  The London market closes today at 11:30 am EST.    

Alton Drew

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Interbank market news scan: Central banks, foreign exchange; cryptocurrency …

In the news …

According to preliminary statistics, outstanding aggregate financing to the real economy (AFRE) reached RMB289.74 trillion at end-January, increasing 13 percent year on year. Report on Aggregate Financing to the Real Economy (Stock) (January 2021) (pbc.gov.cn)

According to preliminary statistics, the aggregate financing to the real economy (AFRE) (flow) was RMB5.17 trillion in January 2021, up RMB120.7 billion year on year (y-o-y). Report on Aggregate Financing to the Real Economy (Flow) (January 2021) (pbc.gov.cn)

Consolidated financial statement of the Euro System. Consolidated financial statement of the Eurosystem (europa.eu)

The European Central Bank (ECB) announces today that it will begin publishing aggregate results of its Survey of Monetary Analysts (SMA) in June 2021. The survey, an ECB staff-level exercise, collects information on market participants’ expectations about the future evolution of key monetary policy parameters, financial market variables and the economy. The survey runs eight times a year and is aligned with the six-week schedule of the monetary policy meetings of the Governing Council. ECB to publish results of the Survey of Monetary Analysts (europa.eu)

The Bank and FCA held a consultation with FMIs and reviewed their co-operation regarding market infrastructure – seeking in particular feedback on how the authorities had co-operated during the Covid market events of Spring 2020. The authorities concluded that the MoU’s arrangements for co-operation remain effective, with appropriate co-ordination and no material duplication. Industry respondents acknowledged the efforts made on co-operation and the Bank and FCA remain committed to effective co-operation. Update on Bank of England and Financial Conduct Authority Memorandum of Understanding on the supervision of market infrastructure and payment systems | Bank of England

Reserve Bank of Australia releases official reserve assets picture. Official Reserve Assets – January 2021 | RBA

10 February 2021, 4:08 am EST