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The morning after

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  • The US Fed Chairman stated that if the economy does better than expected, bond buying will be reduced more quickly. If it does worse than expected, bond buying will be reduced more slowly. The inference is that if the economy does AS expected, bond buying will be scaled back this year.
  • The unanimity of the Bank of England decision would seem to put paid to the idea of any further quantitative policy measures coming through. The Bank's lending survey is due today, which will be seen as a guide to the success of the funding for lending policy.
  • The Greek parliament passed austerity measures yesterday which means that they will receive further cash from the Troika (the outcome was always likely, but there had been some doubt). Greek and German finance ministers meet today.
  • Concerns about Spain's credit rating are being voiced in the markets, but there does not seem to be any particular insight in the stories. Portugal's parliament is to debate a no confidence motion against the government today.

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