#101 Coronavirus Outbreak

Coronavirus outbreak

BOE does not give a forward guidance for a hike or a cut

FOMC: (i)The FED will start decreasing repo and T-Bill purchases on April. (ii) It appears that the lower level for an ample degree of reserves is the $1500bn level. This should make sure that market participants do not experience another spike of the overnight repo rate, as it happened during the last September. (iii) The IOER (interest on excess reserves) was set 5bps higher and now stands at 1.60%.


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