The Bank of England shifted plans to start quantitative tightening operations and insteady planned a series of bond buying operations through October 14.
The QT program that was slated to start on Monday now won't begin until October 31.
In regards to interest rates, the statement said:
"The MPC will make a full assessment of recent macroeconomic developments at its next scheduled meeting and act accordingly"
Note that these actions were taken by the Financial Policy Committee, which is a different (though overlapping) group from the MPC.
Today's BoE decision to do 'whatever it takes' was taken by its Financial Policy Committee, not by its Monetary Policy Committee.
— Axel Merk (@AxelMerk) September 28, 2022
Not all MPC members are on FPC.
I would think some on the MPC are thoroughly pissed off.
FPC:https://t.co/mvRxvcGGTM
MPC:https://t.co/DnWN5e2wpQ
In any case, the bets continue to shift towards aggressive action from the MPC. The next meeting will take place on November 3, which is just after the QT program is set to begin.
The current implied rate is 3.79% which represents a 62% chance of a 125 bps hike and a 38% chance of 150 bps. That would be a strong step.
