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Policy comments

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The tragic events in Brussels led to a very limited safe haven bid in financial markets. Sterling did move media speculation that terrorist action may influence the EU referendum debate – but there can be no certainty about how public opinion reacts to the attacks.
  • UK Prime Minister Cameron has questions in Parliament – a regular event, but coming in the wake of a ministerial resignation, a contested budget, and a telephone poll showing a small majority favouring an exit from the EU this may be more significant for markets.
  • Weidmann of the Bundesbank and ECB is to speak, but his views on ECB policy are generally well known – particularly his concerns about unintended consequences – and markets are unlikely to be surprised by the tenor of his remarks.
  • Bullard of the US Fed is speaking – with the Fed almost certainly divided several ways over the intellectual approach to policy, and with the slow build of inflation pressures attracting more market attention, individual Fed comments assume greater significance.