Look for:

Our offer for

Markets by Region

2022/09/30 / Erste Group Research
Week Ahead

Bank of England forced to intervene on markets

Last week, the new British Prime Minister Elisabeth Truss unveiled her plan to stimulate the UK economy with significant tax cuts. In the face of high inflation rates and the Bank of England's efforts to achieve exactly the opposite, namely to cool the economy, by tightening monetary policy, this move is controversial. The financial markets have reacted by selling off the British pound, especially against the US dollar, as well as long-dated British government bonds. The Bank of England has seen a threat to financial stability from the violent movements in the bond market and has therefore announced a temporary intervention in the market for long-dated government bonds.

The recent act of sabotage, with explosions creating several leaks in the Nordstream I and Nordstream II gas pipelines, has caused a significant short-term increase in European gas prices. Although both pipelines currently play no role at all in supplying gas to Europe, this has nevertheless caused great uncertainty among market participants. Probably because of the justified concern that similar acts of sabotage could occur at other points of critical EU infrastructure. Whoever was responsible for this act of sabotage, what remains for the EU is that the uncertainty has caused energy prices to rise again, at least in the short term. This damages the European economy and increases the pressure on companies, households and ultimately the member states.


PDF Download Download PDF (183kB)

General information

AuthorErste Group Research
Date2022/09/30
Product typeweekly / bi-weekly
Product nameWeek ahead
Topic in focusMacro/ Fixed income
Languageen
Market cap-
AvailabilityAll [1]
Download

Analysis and Forecasting

Date HeadlineDownload
2022/12/02enWeek AheadPDF Download
2022/12/02enGDP hurt by weak consumer spendingPDF Download
2022/12/02csHDP pod tíhou cen energiíPDF Download
2022/12/02csCZ Ranní restartPDF Download
2022/12/02enCEE | Is the region heading into stgflation scenario?PDF Download



Decline
Accept

We use cookies and web analysis software to give you the best possible experience on our website. If you consent, these tools will be used. Please read more information here

INFORMATION FOR PRIVATE CLIENTS / CONSUMERS

Any information, material and services regarding financial instruments and securities provided by Česká spořitelna/Erste Group/ or any of its affiliates (collectively “Erste Group“) on this and any linked website hereafter (jointly the “Websites“) shall be exclusively to investors who are not subject to any legal sale or purchase restrictions.

By agreeing to this hereto, the visitor entering this Websites confirms that has read, understood and accepted this Information and the Disclaimer