ChainCatcher news, according to Jinshi reports, data shows that the unemployment rate in the UK rose more than expected, while wage growth slowed, but was slightly below expectations. After the data was released, the pound fell from 1.2825 to a three-month low of 1.2800 against the dollar, and the euro rose from 0.8294 to 0.8303 against the pound.In the three months to September, the unemployment rate increased from 4% in the previous quarter to 4.3%. Average earnings excluding bonuses rose by 4.8% year-on-year, higher than the expected 4.7%. XTB Research Director Kathleen Brooks stated in a report: "The rise in the unemployment rate may lead the market to start pricing in a rate cut by the Bank of England next month."

ChainCatcher news, according to analysis reports from foreign media, the increase in government spending in the UK has cast a shadow over the outlook for price pressures. The Bank of England, after cutting interest rates by 25 basis points as expected, also stated that if the economy develops as anticipated, borrowing costs may continue to gradually decline, which confirms market pricing that this is the last rate cut of 2024. (Jin Ten)

ChainCatcher news, according to Jinshi reports, the Bank of England has cut interest rates by 25 basis points, lowering the benchmark rate from 5% to 4.75%, in line with market expectations.

ChainCatcher news, according to Bloomberg, as concerns grow that the Bank of England's digital currency (CBDC) Britcoin will replace cash, Bank of England (BOE) Governor Andrew Bailey stated, "The evidence shows that people do indeed want cash, so we will continue to provide it."Bailey's remarks reiterated what senior Bank of England official Sarah Breeden said last year during a Treasury Committee inquiry. She stated:"We will ensure that cash is available as long as there is demand. We will ensure that the cash infrastructure in the financial system exists as long as there is demand—cash and digital currency are both options." Since the idea of CBDC was first proposed a few years ago, lawmakers and citizens have been divided over its pros and cons. Supporters of Britcoin argue that it has the potential to reduce costs and risks. However, opponents worry that it could empower the government to monitor people's spending and replace cash.The Bank of England began designing a digital version of the pound in January this year. However, the Bank of England has not yet decided whether to actually launch it. Bailey stated that he supports the issuance of wholesale CBDC but is cautious about issuing retail CBDC. He added that in terms of retail CBDC, "it's hard to see central bank money playing a anchoring role." However, wholesale CBDC could play a "special role" in "wholesale high-value payments and settlement of payment systems for central bank money."Bailey further added that the Bank of England is establishing retail CBDC for innovation purposes. He believes that CBDC innovation should be open to the private sector, which will ensure that commercial banks modernize their digital payment systems. He also pointed out that banks lack the incentive to improve efficiency in certain areas, such as cross-border payments, which "stifles innovation." Therefore, in the "cross-border payments space, modernization progress remains slow," Bailey stated, and better digital systems are needed, "there is no sufficient reason for arbitrary decision-making on this issue."

ChainCatcher news, after the UK Purchasing Managers' Index preliminary value fell short of expectations, UK government bond yields declined slightly. The UK October composite PMI preview dropped from 52.6 in September to 51.7, below the consensus forecast of 52.4 by economists surveyed by The Wall Street Journal. A weak economy may lead the Bank of England to cut interest rates more than previously anticipated.Data from LSEG Refinitiv shows that the UK money market reflects a high likelihood of interest rate cuts in November and December. According to Tradeweb, after the data release, the 2-year UK government bond yield was 4.111%, down from 4.123% prior. The 10-year UK government bond yield was 4.228%, lower than the 4.235% before the data was published. (Jin Ten)

ChainCatcher news, the Bank of England (BoE) and the Financial Conduct Authority (FCA) have launched a Digital Securities Sandbox (DSS), allowing companies to explore how to use Distributed Ledger Technology (DLT) for the notarization, maintenance, and settlement of financial securities.The FCA recognizes that developing technology has the potential to bring efficiency, transparency, and resilience to the market. The regulator stated that if these technologies are successfully implemented, they could make processes cheaper and faster, thereby "saving costs between the market and users." It emphasized that the DSS will facilitate the trading, settlement, and issuance of digital securities in the UK. This will be done on programmable and distributed ledgers while complying with the regulations of the Bank of England and the FCA.The FCA added that this initiative will strengthen the UK's position as a global financial center, creating the right conditions for investment and sustainable growth.

ChainCatcher news, Morgan Stanley expects the Bank of England to support keeping interest rates unchanged with a 6:3 voting ratio. However, the policy wording may see a dovish adjustment, hinting at possible action in November."Considering all the data since August and the scale of the current restrictions, we believe that the market pricing for a rate cut in September should be slightly higher. Nevertheless, we also think the likelihood of a rate cut will not exceed 30%." Morgan Stanley expects the scale of the Bank of England's QT next year to be £100 billion, up from a previous estimate of £90 billion, but still believes the risks are tilted to the downside. "November is a key meeting for the Bank of England this year, and we expect it to lay the groundwork for a faster pace of rate cuts, as the anti-inflation momentum in service prices is strengthening. We expect rate cuts in November and December, with the bank rate reaching 3.25% by August next year."

ChainCatcher message, Goldman Sachs expects the Bank of England to support maintaining interest rates unchanged with a 7 to 2 vote, providing no clear guidance for the future. The expected scale of APF reduction is £100 billion. A series of rate cuts from November 2024 to August 2025 is anticipated to bring rates down to 3.00%, with a 40% probability for this baseline scenario, whereas the previous forecast was for rates to reach 3.00% by August 2026.Goldman Sachs pointed out three reasons for adjusting expectations, including increased confidence that wage growth will significantly cool in the coming months, inflation progress may accelerate significantly in 2025, the simple Taylor rule points to faster normalization, and most developed country central banks will cut rates consecutively.

ChainCatcher message, Barclays analysis expects the Bank of England to support maintaining interest rates unchanged with a vote of 8 to 1, and to reduce the Asset Purchase Facility (APF) assets by £100 billion."We believe that Ramsden and/or Taylor have a certain probability of voting alongside Dingra in favor of a rate cut, so our expected voting ratio of 1-8 has a bias towards a risk of 3-6." The tone of the meeting statement is expected to remain cautious while acknowledging that inflation has made further progress towards a sustainable return to target. The existing guidance around the need to maintain restrictive policies may remain unchanged. Interest rates are expected to be cut by 25 basis points in November, December, and next year in February, May, and August, reaching 3.75% by August 2025.

ChainCatcher news, according to Jinshi reports, the Bank of England cut interest rates by 25 basis points to 5.00%, in line with market expectations, marking the first rate cut since March 2020.The Bank of England needs to ensure that inflation remains low and be cautious not to cut rates too quickly or too much. Bank of England Governor Bailey stated that the Monetary Policy Committee will act cautiously.

ChainCatcher news, Premier Miton Group's Chief Investment Officer in London, Neil Birrell, stated that the UK has finally cut interest rates. The Bank of England has shifted from worrying about inflation to worrying about economic growth, although they will certainly be cautious about further rate cuts and cannot allow the bond market to develop overly high expectations too soon. However, this is an important move, and so far, only the United States has not joined the global rate cut trend. We may see financial markets further reflect the shift in the cycle overall, but there may be more within asset classes.

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) and the Bank of England have released their Pyxtrial project report, which aims to monitor the reserve status of asset-backed stablecoins and tokenized assets, to be used for stablecoin balance sheet regulation, thereby helping countries respond more effectively to the risks posed by stablecoins. Currently, the system is not yet fully prepared for launch. Countries have also emphasized concerns about the recent runs on stablecoins.The Bank for International Settlements also stated that Pyxtrial has the potential to monitor tokenized products backed by real-world assets (RWA).

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) and the Bank of England (BoE) stated that the balance sheets of stablecoin assets can be regulated.According to their latest project report released on Wednesday, the Pyxtrial project has developed a prototype data analysis pipeline that can provide regulators with near real-time data on stablecoin liabilities and their supporting assets. The report stated, "This technology is the first step towards enabling regulators to proactively identify issues related to stablecoin support and assist in the development of policy framework tools."

ChainCatcher message, the overnight index swap rate curve shows that the probability of the Bank of England cutting interest rates on August 1 has risen from 60% on Tuesday to 64%.

ChainCatcher news, the Bank of England stated that it plans to conduct a series of experiments on Distributed Ledger Technology (DLT) and wholesale Central Bank Digital Currency (wCBDC) to keep up with changes in the payment landscape and assess the opportunities and risks brought by the development of fintech.The bank stated that it will work with the Treasury, payment system regulators, and the Financial Conduct Authority to ensure that the singularity of currency is maintained, even when stablecoins are involved. In other words, ensuring that all forms of currency—cash, bank deposits, etc.—can be exchanged for one another. In the discussion document, the bank indicated that it will conduct a series of experiments to ensure the singularity of currency is maintained between stablecoins and tokenized deposits (i.e., deposit claims represented on programmable platforms).

ChainCatcher news, senior economist Luke Bartholomew from investment company Abrdn stated in a report that the Bank of England's interest rate decision in August appears to face significant challenges following the release of June's inflation data.He mentioned that the Bank of England will almost certainly pay attention to dynamic factors such as the growth of hotel prices, but the continued rise in service sector inflation will concern the Bank of England about how long inflation can remain at the 2% target once the favorable base effects pass and domestic price pressures begin to push overall inflation higher again. Abrdn still expects a rate cut in August, but this requires Thursday's employment data to show a slowdown in wage growth.

ChainCatcher news, according to Crowdfund Insider, ClearBank has announced that it has been selected by Poundtoken to provide banking services, allowing it to hold its fiat-backed stablecoin reserves at the Bank of England. ClearBank offers secure accounts, real-time clearing, and embedded banking services for financial institutions.It is reported that Poundtoken is the UK's first regulated issuer of a pound stablecoin. The fiat equivalent assets of Poundtoken (GBP) are "held in secure and segregated bank accounts to support a one-to-one exchange for pounds."In addition, ClearBank will also provide real-time transfer services.

ChainCatcher news, according to Bitcoin.com, Crescat Capital's macro analyst Otavio Costa stated that the U.S. economy is about to face problems ahead of the presidential election. He called attention to the deterioration of liquidity in the U.S. government securities index, which is at its worst level since the 2011 European debt crisis. More disturbingly, as the liquidity of U.S. Treasuries is being eroded, the U.S. has "one of the largest interest rate differentials in history" compared to other developed countries.He believes that the U.S. economy is about to experience an "England Bank moment."It is reported that what Otavio Costa referred to as the "England Bank" is the announcement by the UK of a £45 billion (over $57 billion) tax cut plan, which led to a sharp rise in government bond yields and raised concerns about the UK's debt sustainability in September 2022.

ChainCatcher news, according to Cointelegraph, the Bank of England (BoE) and the Financial Conduct Authority (FCA) will take a "proactive" and flexible regulatory approach through the Digital Securities Sandbox (DSS).Bank of England Executive Director Sashi Mills stated, "This will enable regulators to adopt new methods to maximize the potential benefits of innovation while managing financial stability risks. Through DLT, the DSS aims to alleviate inefficiencies in the 'post-trade environment,' which can lower the entry barriers for providers while enhancing the resilience of financial markets."