BOE: Pill on employer NICs passthrough - it's overstated in importance
Feb-07 13:12
- "I think it in the there is a danger that this specific issue [employer NICs] gets overstated in importance. And so I think it is important to emphasize, from our perspective. So sort of taking a macroeconomic view of the UK economy over a sort of longer run, I think it is important to emphasize that probably this is not sort of the main driver. And perhaps the media and other discussions of it, and perhaps emphasize that that's not to say it's that important, of course."
- "And then the second thing is, from the policy maker point of view, I mean, it's not just an analytical question... for policy makers on the MPC, whose focus and mandate is a price stability mandate, achieving the inflation target... the focus, in some sense, is on the implications of these types of measures called price developments. And I think it is important to recognize that while it is certainly true that one margin of adjustment has been employment... as reported in the monetary policy report, is also true that one margin of adjustment that firms are reporting both in their responses to our surveys and those of others, and in the agency intelligence is also in terms of raising prices. So I just think from the MPC perspective, that's an important point."
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GILT PAOF RESULTS: The PAOF for the 4.375% Mar-30 Gilt was not taken up.
Jan-08 13:04
- GBP1.0625bln had been on offer.
- This leaves GBP 4.250bln of the gilt in issue.
STIR: Repo Reference Rates
Jan-08 13:03
- Secured Overnight Financing Rate (SOFR): 4.27% (+0.00), volume: $2.322T
- Broad General Collateral Rate (BGCR): 4.26% (+0.00), volume: $858B
- Tri-Party General Collateral Rate (TGCR): 4.26% (+0.00), volume: $842B
- (rate, volume levels reflect prior session)
DENMARK: Foreign Min-Open To Dialogue w/US On Arctic Cooperation
Jan-08 13:01
Foreign Minister Lars Løkke Rasmussen speaking at a press conference in Copenhagen as US President-elect Donald Trump becomes increasingly vocal about his desire to take control of the Danish autonomous territory of Greenland. So far the Danish gov't has sought to contain the issue without overtly slapping down the president-elect's demands, with Copenhagen likely concerned that a public rebuke could result in retaliatory action from the incoming Trump administration.
- Rasmussen: "...within the Realm - Denmark, Greenland, and the Faroe Islands - we have a collective obligation to find our position in this somewhat more uncertain world. [...] This also includes being open to dialogue with the Americans about how we can potentially cooperate even more closely than we already do to ensure that American ambitions are realised,"
- Rasmussen: "Geopolitics is becoming more significant.[...] we are unfortunately also witnessing increasing great power rivalry. We see a Russia that is rearming itself. We see a China that is also starting to show interest. It is completely legitimate that both the United States [NATO & Denmark] are paying attention to this."
- Domestically the issue could prove a make-or-break for PM Mette Frederiksen's minority gov't. Trump's bullish stance could result in a 'rally round the flag' effect that sees even opposition parties uniting behind the PM and gov't. However, the gov'ts reliance on support in a confidence and supply agreement from deputies (including the two Greenlandic representatives in the Folketing) could leave it vulnerable to collapse if they withdraw support over the issue.
