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BOE’s Bailey: Would shrink balance sheet before raising rates in future

Would shrink balance sheet before raising rates in future.

Financial system mustn’t become reliant on these extraordinary levels of central bank reserves.

Massive programme of asset purchases has been right thing to do.

Central bank independence should not be called into question by COVID-19.

Current scale of central bank reserves mustn’t become a permanent feature.

As economies recover, it’s likely that some of the exceptional monetary stimulus will need to be withdrawn, including by reducing reserves.

Elevated balance sheets could limit the room for manoeuvre in future emergencies.

US Dollar Index recedes from tops, back near 97.50

The greenback, in terms of the US Dollar Index (DXY), lost some upside momentum in the 97.70 region and now retreats to the mid-97.00s at the time of
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USD/CNH stays consolidative between 7.0500 and 7.1250 – UOB

FX Strategists at UOB Group noted USD/CNH is predicted to stick to the consolidation theme in the next weeks. Key Quotes 24-hour view: “USD traded bet
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