|
Gleeson moves the markets |
| Print |
|
Email to a friend
|
|
Tuesday, 27 November 2007 |
A story written by the Post’s business editor Bill Gleeson was cited as the primary cause for a sharp fall in gilts and futures on the markets yesterday.
 Gleeson
LONDON, Nov 26 (Reuters) - British gilt and short sterling futures fell on Monday, tracking international markets after comments from Bank of England chief economist Charles Bean.
By 0913 GMT, the short sterling strip was trading as much as 5 ticks lower. The December long gilt future was 15 ticks lower at 109.88, outperforming Bunds with dealers noting the hawkish nature of Bean's comments in the Liverpool Daily Post.
"People are suggesting he might not be supportive of a near term rate cut," said one dealer.
Bean voted with the majority of Monetary Policy Committee members to keep interest rates steady at 5.75 percent this month, although markets have been expecting a cut soon.
He told the Liverpool newspaper that while financial market turmoil would likely continue for sometime, policymakers were still worried about inflationary pressures.
"The backdrop to our attempts to keep inflation in line with target is less favourable than it has been," he said in comments published on Monday.
"What it will mean is if the imported component of inflation is somewhat higher, the domestically generated component needs to be somewhat lower to compensate, and that may mean we have to run a tighter monetary policy for a while to get that domestic inflation down."
Bean, a member of the MPC, had been in Liverpool last week addressing a group of businesspeople.
Gleeson managed to interview him after but held the story back until Monday.
“It’s a funny thing” he told How-Do. “We wrote and led with a story about the effect of the markets turmoil on local businesses but the markets were more interested in his comments about the international conditions which were further down page.”
Something to add? Then leave a comment below or email us now.
Sponsored links:
|
