Daily Commentary BY THE CURVE TEAM –

Daily Insights – Rate Rises Ahead

27th of October, 2021

Bank of England Rise Ahead

  • Currently the Bank of England’s cash rate is at 0.10%.
  • In November, that is expected to 0.25%.
  • Their unemployment rate is 4.5%.
  • Core inflation is 2.9% for the year.

RMBS Spreads

  • The CLF is expected to prompt a widening of spreads for ADI FRNs, as these will no longer be available to include in the CLF.
  • Similarly, this widening of spreads is expected to flow to RMBS issues, which have been extremely tight recently.

Josh Stewart

Associate - Money Markets