Coming up at 1100 GMT, which is 0600 US Eastern time:
- Andrew Hauser, Executive Director for Markets at the Bank of England
- delivers a speech at a workshop on markets dysfunction
- hosted by the Initiative on Global Markets in Chicago
- Title is: 'Looking through a glass onion: lessons from the 2022 LDI intervention'
The 'LDI intervention' was back in late September/October last year in the aftermath of the UK Chanellor (finance minister) Kwarteng's "mini budget" announcement. The announcement, in a nutshell, was of 45bn GBP in unfunded tax cuts. these were judged a major fiscal irresponsibility my markets and triggered vast setting of UK bonds (gilts), that bled into GBPO selling also. The Bank of England stepped into the fixed interest markets with bids in an emergency intervention to stabilise gilts and GBP.
The Bank of England turned a vast profit on the operation. "Don't fight the Bank of England" is a sound motto to live by. If you are George Soros, feel free to disagree with me.
