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BoE widens scope of its Gilt purchases to include linkers

Chris Scicluna
Emily Nicol
  • Drop in UK unemployment rate to its lowest since 1974 reflects increased inactivity
  • Japanese economy watchers less pessimistic about household demand in September as Covid infections fall back
  • Italian IP data expected to report a modest drop in output

 

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BoE to increase long-dated bond purchases

Chris Scicluna
Emily Nicol
  • UK labour market figures on Tuesday are expected to show that unemployment remained at the 48-year low of 3.6% in the three months to August; August’s GDP report (Wednesday) is likely to confirm very subdued growth on the month 
  • Euro area IP and goods trade figures (due Wednesday and Friday) are expected to show that output rose in August despite a decline in Germany
  • A busy week ahead in the US brings the Fed minutes from the 21 September FOMC meeting (Wednesday), followed by September’s CPI report (Thursday) 
  • Following today’s Japanese holiday, the focus this week will turn to sentiment indicators, with the economy watchers, Reuters Tankan and BoJ’s consumer opinion survey all due

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German factory orders slump in August

Emily Nicol
  • BoJ’s quarterly Regional Economic Report maintained the assessment that Japan’s economy is recovering moderately 
  • Given ongoing concerns about the government’s large and unfunded fiscal package, Fitch yesterday revised the outlook on the UK’s AA- credit rating to negative

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Tokyo CPI flags rising price pressures

Emily Nicol
  • Euro area PPI inflation expected to rise to a new series high in August
  • US factory orders data expected to have declined for a second successive month in August

 

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UK politics to remain under the spotlight

Emily Nicol
  • BoJ’s Tankan survey reports a further rise in firms’ inflation expectations
  • Tokyo CPI figures for September due tomorrow, while the latest household consumption and wage data are due on Friday
  • ECB account on Thursday will be watched for the debate between the hawks and doves
  • A busy week for top-tier US releases includes the manufacturing and services ISMs, as well as the employment report on Friday

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