Bank of England Explains Why Intervention Wasn’t Pivot to QE, But Effective Effort to Halt Death Spiral Triggered by Tax-Cut Panic in Gilt Market: Bond Purchases Near Zero this Week by Wolf Richter • Oct 6, 2022 • 73 Comments Underlying pension fund issues can now be dealt with in an orderly fashion.
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.
Eurozone Inflation Spikes to 10%, Ex Energy 6.4%. Germany 10.9%. From Temporary Inflation mid-2021 to Runaway Inflation by Wolf Richter • Sep 30, 2022 • 77 Comments This inflation shock finally goosed the ECB out of its reckless NIRP policies.
UK Chaos Economics: Fretting over “Financial Stability” & “Contagion” after Gilts Plunged, Bank of England Buys Bonds by Wolf Richter • Sep 28, 2022 • 262 Comments It wasn’t big hedge funds that blew up, but £1.5 trillion in leveraged pension funds. BoE stepped in to bail them out and prevent further contagion.
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.
Natural Gas Futures in Europe Plunge 44% from Peak by Wolf Richter • Sep 12, 2022 • 161 Comments Storage above target, floating LNG import terminals going into service.
ECB Shocked, Shocked, to Find that Inflation Is Going on in Here, Hikes by 75 Basis Points, after 50-Basis-Point Hike in July by Wolf Richter • Sep 8, 2022 • 99 Comments Recklessly late, it hiked a lot faster than forecasters even imagined a few months ago: 125 basis points in two meetings and promising more.
Runaway Inflation in the Eurozone, which Kicked Off in mid-2021, Sets New Record, Wakes Up even Ridiculously Reckless ECB by Wolf Richter • Aug 31, 2022 • 197 Comments “Temporary” inflation is suddenly runaway inflation. But the negative-interest rate idiocy and QE are finally over.
QT Kicks Off at the ECB: Assets Fell by €91 Billion from Peak by Wolf Richter • Aug 10, 2022 • 94 Comments Raging inflation ends an absurdity.
ECB Exits Negative Interest Rates, Hikes by 50 Bpts, Double its Promise, Bigger Hikes on Tap, Shows Off New Glue Gun to Prevent Sovereign Debt Crisis During Rate Hikes & QT by Wolf Richter • Jul 21, 2022 • 237 Comments Raging inflation finally forces the ECB to abandon its reckless and absurd monetary policies and turn hawkish.
