Bank of england minutes pointing to 2016 raise
The minutes from the last Bank of England monetary policy meeting have revealed there remains little dissent within the committee, with all members united in holding rates steady at 0.5%.
Inflation
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Fund managers sanguine as uk slips into deflation
UK consumer price inflation fell to -0.1% in April, the first negative reading since records began in 1996.
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Positive sentiment on chinese banks ignores govt. stranglehold
The consensus view that China’s cuts to banks’ required reserve ratios were a stimulative measure is negated by the mechanics of Chinese banking system itself, says Matthews Asia’s Andy Rothman.
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Changing inflation expectations herald shift to value – long
Changing views on inflation are likely to signal a weakening of investors’ fixation with yield and duration and an improvement in perceptions of value, says Charles Long, manager of the GLG UK Select Fund.
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PA ANALYSIS: Ways to beat the heat in the bond pressure cooker
After months of grinding yield compression the pressure valve on the German sovereign bond market was released, with 10-year bund yields jumping almost ten-fold in the space of a few days.
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PA ANALYSIS: Unpicking the productivity puzzle
Aside from revising growth lower and putting an end to sterling’s election-led rally, The Bank of England’s May inflation report once more placed the spotlight firmly on productivity growth as the possible bad apple that could upset the whole cart.
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Inflation to hit 2% in two years, but productivity remains key – bo e
Inflation should return to its 2% target within the next two years, the Bank of England said on Wednesday, but labour productivity remains the key uncertainty, as it downgraded its forecast for UK GDP growth from 2.9% for 2015, to 2.5%.
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PA ANALYSIS: What happens if the growth bears are wrong?
Recent ructions in bond markets have underlined how quickly market sentiment can change, particularly with regard to interest rate expectations.
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Investors should heed bond shock shot across the bows
Investors have been getting a rather sharp reminder of just how much interest rate risk is present within government bonds.
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‘levi’s market’ set for policy convergence – rathbones
Policy divergence will reach a breaking point and either drag the US and UK back into quantitative easing or trigger widespread reflation, says Rathbones’ Bryn Jones.
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QE, zero rates driving deflation – Terry Smith
Quantitative easing and its sister, zero interest rates are having a deflationary impact on the global economy says Fundsmith CEO, Terry Smith.
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Cynical bulls, far sighted bears and the spectre of deflation denialism
Bank of America Merill Lynch declared 2015 the ‘Year of the Blink’ on Thursday, pointing out in its latest Thundering Word note that both the Fed and the PBoC “blinked this year, allowing asset returns to remain buoyed by max liquidity”.