Chillin' out till it needs to be funded
BoE stayed with its original plan and ECB is unlikely to rock the boat but both subject to extreme discussions on adding $400 bln each in new QE. BoE has already committed $400 bln in liquidity ops yet at GBP 275 bln purchase target for bonds.
Both updates happen later today, both buoyed by current policy”s gains in economic performance in November and december even as Germany continues to teeter on the borderline
Large QE programs are calendared for April by the BOE currently and some expect a smaller GBP 50 bln per month program from February.
BoE rates at 0.5% and ECB at 1% are unlikely to be cut further as these ahve been treated as bottoms by both Central Banks earlier
Spain and Italy auctions completed with lower borrowing costs and okay bid cover ratios today