– Is The Bank Of England Giving The Market A Hint Of What’s To Come? (ZeroHedge, Oct 13, 2014):
Despite Bank of England’s Mark Carney confident overtones that policy-makers must focus on economic developments rather than worry about potential market volatility as they consider exiting stimulus, it appears the esteemed central bank is communicating ‘forward guidance’ on its money-printing expectations over the next decade… BANK OF ENGLAND SIGNS 10-YEAR BANKNOTE PRINTING CONTRACT WITH DE LA RUE… starting in April 2015 (when US rate hikes might start?)
“We have to accept that as this process moves forward, as some economies emerge from a period of exceptional unconventional stimulus, there will be greater volatility,” Carney said in an interview on CNBC today.
“That in and of itself should not influence the path of normalization of monetary policy.”
Bank of England enters new 10-yr contract with De La Rue to print its banknotes.
De La Rue was preferred bidder. BOE says it “completed assurance activity on De La Rue’s bid and finalised the contract”
Printing under the new contract will begin April 2015
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It seems that instead of being recession-proof, money-printers are the perfect hedge for a new normal of lower for longer rates and “we’re ready to print if stocks ever drop 10%” 3rd mandate followers – no matter what the bankers say.