China Asks Local Governments to Prepare for Potential Downfall of Evergrande Group - Sources

tweet at 5:09am: *CHINA TELLS EVERGRANDE TO AVOID NEAR-TERM DOLLAR BOND DEFAULT

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 22 September 2021, the Committee judged that the existing stance of monetary policy remained appropriate. The MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion. The Committee voted by a majority of 7-2 for the Bank of England to continue with its existing programme of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these government bond purchases at £875 billion and so the total target stock of asset purchases at £895 billion. In the MPC’s central projections in the August Monetary Policy Report, UK GDP was projected to recover further over the remainder of the year, with demand growth boosted by a waning impact from Covid-19 (Covid). There was projected to be a period of excess demand in the near term, before demand and supply were expected to return broadly to balance as demand growth slowed and constraints on supply eased. CPI inflation was projected to rise temporarily in the near term, to 4% in 2021 Q4, owing largely to developments in energy and goods prices. Conditioned on the market path for interest rates, CPI inflation was expected to fall back to close to the 2% targ tweet at 7:01am: Bank of England votes 7-2 to keep bond buying unchanged tweet at 7:01am: BOE SAYS: BANKSTAFF HAVE REVISED DOWN THEIR EXPECTATIONS FOR THE LEVEL OF UK GDP IN 2021 Q3BY AROUND 1% SINCE THE AUGUST REPORT #News #Forex #UK #BOE tweet at 7:01am: BOE SAYS: DOWNWARD GDP REVISION IN PART REFLECTS THE EMERGENCE OF SOME SUPPLY CONSTRAINTS ON OUTPUT #News #Forex #BOEBank of England holds interest rates and downgrades growth targets The Bank of England on Thursday kept monetary policy unchanged and downgraded economic growth projections for the third quarter of the year. It comes shortly after the U.K.’s economic growth slowed unexpectedly in July and consumer price inflation saw its largest month-on-month increase since records began in Jan. 1997. The inflation reading prompted some BOE watchers to bring forward rate hike expectations off the record 0.1% low to early next year, while economists at Bank of America believe the central bank could be pressured into a rate rise as soon as February if inflation pressure persists. Sterling traded up 0.4% at $1.3676 shortly after the central bank’s rate decision, paring losses from earlier in the week.