Supercharging QE, BOE Hike Debate, China Energy Crisis: Eco Day

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Happy Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

• The European Central Bank will supercharge its regular bond-buying program before pandemic purchases run out in March, according to economists surveyed by Bloomberg
• The Bank of England’s new chief economist said a decision whether to raise interest rates next month is live and “finely balanced.” Three former senior officials say the BOE will likely defy investors’ expectations of a sudden hike, as it rarely shifts policy in dramatic fashion
• Bank of Russia Governor Elvira Nabiullina is likely to raise interest rates for a sixth straight time Friday as inflation runs nearly double the target, but just how large it will be has economists dividedraise interest rates
• U.K. consumer confidence fell in October to the lowest level since the country was stuck in lockdown due to a combination of surging inflation, food and fuel shortages and climbing Covid-19 cases
• Energy shortages rippling through China’s manufacturing centers for steel, aluminum and cement have authorities racing to resolve a crisis that some economists warn risks crimping global growth
• The U.S. and five European governments reached an agreement resolving a trade dispute over digital taxes on some of the largest American tech giants
• The Federal Reserve will ban top officials from buying individual stocks and bonds as well as limit active trading after an embarrassing scandal that led two officials to resign
• Japan finally has an inflation pulse and the gains are much stronger than they first appear, a factor that could start to influence speculation over the Bank of Japan’s policy path
• Paraguay’s central bank surprised economists by delivering its biggest interest rate increase in a decade
• Investors are stepping up bets that the world’s key central banks will raise interest rates sooner than they’d planned, and faster than they’d like
• Brazilian President Jair Bolsonaro plunged his administration into crisis as he forged ahead with a controversial spending plan that triggered a rout in financial markets and the resignation of key members of his economic team

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