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Carney has to analyze risks to the UK from drought in bond-market liquidity

Mark Carney and his officials must take a close look at the risks posed to the U.K. from a possible drought in bond-market liquidity and report back to Parliament, the chairman of its Treasury committee said, as Bloomberg reports. Andrew Tyrie, a Conservative Party lawmaker, said on Sunday in a letter to the Bank of England governor that he would like a "detailed response" to his query on potential threats posed by a cocktail of future unwinding of stimulus, including quantitative easing, and the effects of rules imposed on banks. Read more...

Sterling higher in a quiet Monday trade

There are no major data releases today, with Sterling slightly higher after large decline on Friday due to NFP figures. Also, markets are being influenced by latest BoE interest rate decision and the following minutes. The Bank froze rates at 0.5% again yesterday with Ian McCafferty the only member of the nine-strong monetary policy committee voting for a hike. It said inflation, running at minus 0.1 per cent, would return to the 2 per cent target ‘in around two years’ if rates rose as expected by markets.
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Sterling down after BoE left interest rates unchanged

Minutes from the Bank of England's most recent policy meeting released Thursday showed that the Monetary Policy Committee voted 8-1 to keep rates on hold. The minutes show eight members were in favor of leaving the key interest rate at a record low of 0.5%, in line with expectations and unchanged from the previous meeting.
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RBA ready to cut rates if neccessary

Aussie was initially pushed lower this morning after Australia’s central bank Governor Glenn Stevens said accommodative monetary policy is likely to be appropriate “for some time yet”, while adding the macroeconomic impact of recent mortgage rate increases by major banks “may not be large.” “It seems likely that an accommodative stance will be appropriate for some time yet,” Stevens said in the address Thursday. 
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