Daily Alert – Wednesday 19th October 2022: What’s going on with the BoE and FT?

Mark NugentDaily Alert, October 2022

Daily Alert – Wednesday 19th October 2022: What’s going on with the BoE and FT?

Good morning.

The markets were calm yesterday. The main news, again, came from the UK.

For the second time in two weeks, the Bank of England was forced to deny a story in the FT. Last week, the FT reported the short-term, emergency bond-buying designed to avoid a fire-sale by pension funds, may not come to a stop after all. The bank immediately denied this. Yesterday, the FT reported that quantitative tightening was to be delayed due to the general febrility of the market. Again, the Bank denied it.

The point is that the FT and the BoE have a very close relationship whereby the Bank use the FT to communicate a consistent and considered message to, in part, create the sense of the former’s prudence and general sound management. All this reporting and denying malarkey makes one wonder what is really going on. Not good.

Also, this morning, inflation in the UK hit 10.1%, a 40-year high.

I am waiting for some good set-ups to develop, so no trades taken, yet.

Looking ahead there is little on the calendar. Equities may be reversing…that’s interesting.

I’ll be back tomorrow.

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