Bank of England Hikes 75 Basis Points, Most since 1989, to 3%. Hopes Raging Inflation Will “Fall Sharply” in mid-2023. If Not, “Will Respond Forcefully” by Wolf Richter • Nov 3, 2022 • 59 Comments But in Q4, inflation will shoot to 11%, the BOE said. Media reported it as a “dovish” monster rate hike. Whatever.
Bank of England Sold Bonds Outright Today to Speed up QT, Will Sell More at Regular Auctions: First Major Central Bank to Sell Bonds Outright by Wolf Richter • Nov 1, 2022 • 99 Comments It went fine. Gilt yields are way down from panic highs. Another dream of the “pivot” mongers goes to heck.
ECB Starts QT via Loans rather than Bonds, Hikes by 75 bpts, to 1.5%, More Hikes to Come by Wolf Richter • Oct 27, 2022 • 55 Comments To “address unexpected and extraordinary inflation increases,” the ECB starts QT by “recalibrating” TLTRO III, which will further reduce its balance sheet.
“No Easy Outs to Restoring Price Stability”: Bank of Canada Hikes by 50 bpts to 3.75%, More Hikes to Come, QT to Continue, as “Unsustainable” Home Prices Plunge, GDP “Stalls” by Wolf Richter • Oct 26, 2022 • 98 Comments “Not enough” v. “Too much.”
Return of the Bond Vigilantes Sent Shockwaves Around the Globe by Wolf Richter • Oct 18, 2022 • 104 Comments Deficits didn’t matter – until raging inflation brought the bond vigilantes back to life.
Shock & Awe Balance Sheet Reduction at the Bank of Japan: Assets Drop 7.3% from Peak by Wolf Richter • Oct 7, 2022 • 84 Comments Inflation spiking, yen getting beaten half to death, yield peg under attack, and Kuroda’s term won’t expire till April. Here’s what the BOJ did.
Bank of England Bought No Bonds Today, after Buying only £22 Million on Monday, instead of £5 Billion per Day by Wolf Richter • Oct 4, 2022 • 107 Comments Carefully communicating this isn’t a Pivot to QE but a temporary “backstop” to calm a panic. And it calmed the panic with minimal purchases.
UK Credit Market & Pension Panic, How Far Will the Fed Go, Upheaval in New Car & Truck Demand, Buyers’ Strike for Used Vehicles, and Housing Downturns in the US & Canada by Wolf Richter • Oct 1, 2022 • 100 Comments Wolf Richter on “This Week in Money.”
UK Bond Yields Do Monster Spike, Pound Plunges as Bond Vigilantes Rise from Graves, Go after Government’s Fiscal Recklessness by Wolf Richter • Sep 26, 2022 • 127 Comments Bank of England: won’t “hesitate” to hike rates “as much as needed.” Bond market fears much higher inflation and interest rates, for much longer.
The Most Splendid Housing Bubbles in Canada, September Update: House Prices Plunge by Wolf Richter • Sep 22, 2022 • 109 Comments The ridiculous price spikes now face Bank of Canada’s monster rate hikes, QT, and spiking mortgage rates.
