Kay Van-Petersen
Australia’s Q3 CPI figures proved positive, says Saxo Capital Markets’ global macro strategy Kay Van-Petersen, but the banks didn’t appear to be buying it.
Squawk / 04 August 2016 at 21:56 GMT
Managing Director / Technical Research Limited
New Zealand
The Bank of England’s decision to combine a cut to the Bank rate with an increase in bond buying raises the issue of how big their balance sheet will become relative to the size of the market. The chart below shows the BOE is already a bigger player than the US Fed or ECB, but way behind the Bank of Japan. Yesterday’s announcement from Mark Carney suggests a return to the 2012 levels. Carney also suggested negative rates for the UK are out of the question, so any further monetary easing would have to come via a final drop in the Bank rate to zero plus even more bond buying.
04 August
Patto Patto
Sterling down; bond yields down; stock market up. A very successful move by the BOE. Lessons here for other central banks. Neither the Bank of Japan nor Reserve Bank of Australia got any bang for their buck in recent easings: next up the Reserve Bank of New Zealand on Aug 11. They definitely do need some bang for their buck so will have watched their BOJ, BOE and RBA colleagues closely......
04 August
goldfinger goldfinger
Carney is not slow on the uptick. Also states neg interest rates don't work and that he is not an advocate. He has flooded banks with liquidity and insisted rate drop passed to borrowers. What happens when banks say commercial judgement doesn't allow further lending? Because his caveat was that the borrower had to be viable. I have been on the wrong end of a bank saying "we are not lending to that sector at the moment". Got naff all to do with individual viability.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail