Inflation-wary Bank of England to halt money-printing press

LON

LONDON (Reuters) - The Bank of England looks set to call a halt to its asset-buying program on Thursday, despite the economy having slipped into recession and renewed risks rising from the euro zone debt crisis, as UK inflation remains stubbornly high.

LONDON (Reuters) - The Bank of England looks set to call a halt to its asset-buying program on Thursday, despite the economy having slipped into recession and renewed risks rising from the euro zone debt crisis, as UK inflation remains stubbornly high.

The Bank of England looks set to call a halt to its asset-buying program on Thursday, despite the economy having slipped into recession and renewed risks rising from the euro zone debt crisis, as UK inflation ...

The Bank of England looks set to call a halt to its asset-buying program on Thursday, despite the economy having slipped into recession and renewed risks rising from the euro zone debt crisis, as UK inflation ...

MUMBAI: The Reserve Bank of India looks set to keep its policy rate on hold on Wednesday, after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus. All but two of 54 analysts in a Reuters Poll said the repo rate would be left at 6.00 per cent, the lowest since November 2010. In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held. On Wednesday, after a two-day meeting, the RBI is likely to reiterate concern about inflation, as the annual rate increased to 3.58 per cent in October.

With EURUSD hardly budging, constantly disappointing economic data (from periphery to the core now), and central bank transmission mechanisms that are entirely clogged and useless for anything but stuffing the pockets of bloated bank balance-sheets with domestic sovereign debt, it is no wonder Germany's Bundesbank has said 'enough'. "If we pursued our own monetary policy... it would look different," explained Bundesbank chief Jens Weidmann.

Excellent embedded graphic from the Economist (below) in a daily chart piece titled “Spreading Infection” — the infection, in this case, being the euro. The inner contrarian in yours truly can’t help but look at ongoing euro strength — and corresponding $USD weakness — and salivate. The prevailing logic driving euro strength seems utterly backwards, or at the very least subject to rapid time decay.