{"id":45136,"date":"2023-04-11T19:06:59","date_gmt":"2023-04-12T00:06:59","guid":{"rendered":"https:\/\/prefblog.com\/?p=45136"},"modified":"2023-04-11T19:06:59","modified_gmt":"2023-04-12T00:06:59","slug":"april-11-2023","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=45136","title":{"rendered":"April 11, 2023"},"content":{"rendered":"

Pablo Hern\u00e1ndez de Cos, Governor of the Bank of Spain, gave a speech<\/a> titled Latest monetary policy developments in the euro area:<\/p>\n

We also provided more detail on what will guide our assessment of the inflation outlook and, therefore, our monetary policy decisions. In particular, we announced that this assessment will depend on three main factors. First, incoming economic and financial data. Second, the of underlying inflation dynamics. And lastly, the strength of monetary policy transmission.<\/p>\n

I will now elaborate on these three factors.<\/p>\n

The first is our assessment of the inflation outlook in light of the incoming economic and financial data. This assessment will be informed primarily by our staff macroeconomic projections, on which all data are incorporated in a coherent manner.<\/p>\n

In this regard, the staff March forecast pointed to a weakening of activity in 2023, with real euro area GDP expected to grow by 1% in 2023 (compared with 3.6% in 2022). This scenario is somewhat more optimistic than that of the previous projections (published in December), reflecting better than expected recent economic data and the fall in the cost of energy, so that real income losses are lower. Growth is expected to pick up, to 1.6%.
\n…<\/b>
\nHeadline inflation is expected to remain high for the rest of 2023, albeit on a downward path that will take it to 2.8% in the last quarter of the year. This drop in inflation is mainly explained by the energy component, while underlying inflation is expected to remain elevated. Specifically, the ECB projections point to inflation averaging 5.3% in 2023, before decreasing to 2.9% in 2024 and to 2.1% in 2025. This downward trend would be underpinned by the gradual disappearance of upward pressures from the reopening of the economy, previous supply-side shocks (supply bottlenecks and high energy prices) and euro depreciation, reinforced by increasing pass-through of the recent fall in energy prices and exchange rate appreciation. The fall in inflation in the medium term is also explained by a moderation in domestic demand pressures, owing inter alia to increasing dampening effects of our monetary policy decisions.
\n…<\/b>
\nA third element that adds a certain degree of complexity to the inflation outlook relates to fiscal policy. In 2022 and 2023, euro area countries significantly increased their fiscal policy support measures to protect businesses and households from rising energy prices and inflation, bringing the total gross stimulus to close to 2% of euro area GDP in both years. While these measures helped to contain inflation in 2022 and are expected to do so in 2023, the extent of their impact this year is still uncertain. And the withdrawal of these measures will push consumer prices upwards in the coming years, especially in 2024.3 In this regard, it is important to stress that, in the current high inflation setting, an appropriate policy mix requires a fiscal stance that, at the aggregate euro area level, is not at odds with the tightening of our monetary policy. This means that government support measures should be temporary, targeted and tailored to preserving incentives to consume less energy, and they should be gradually rolled back as energy prices fall. Otherwise, we are at risk of driving up medium-term inflationary pressures, which
\ncould call for a stronger monetary policy response.<\/p><\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref\u2122 Preferred Indices
\nThese values reflect the December 2008 revision of the HIMIPref\u2122 Indices<\/strong>
\nValues are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
\nCurrent
\nYield
\n(at bid)<\/td>\n		Median
\nYTW<\/td>\n		Median
\nAverage
\nTrading
\nValue<\/td>\n		Median
\nMod Dur
\n(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.9052 %<\/td>\n2,313.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.9052 %<\/td>\n4,436.8<\/td>\n<\/tr>\n
Floater<\/td>\n9.74 %<\/td>\n9.88 %<\/td>\n54,244<\/td>\n9.65<\/td>\n2<\/td>\n1.9052 %<\/td>\n2,556.9<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2874 %<\/td>\n3,362.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.00 %<\/td>\n7.01 %<\/td>\n42,748<\/td>\n2.64<\/td>\n7<\/td>\n0.2874 %<\/td>\n4,015.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2874 %<\/td>\n3,132.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0170 %<\/td>\n2,761.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.18 %<\/td>\n6.22 %<\/td>\n54,277<\/td>\n13.60<\/td>\n34<\/td>\n-0.0170 %<\/td>\n3,011.1<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.80 %<\/td>\n7.58 %<\/td>\n88,668<\/td>\n12.17<\/td>\n63<\/td>\n0.0912 %<\/td>\n2,123.3<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n6.09 %<\/td>\n6.13 %<\/td>\n74,319<\/td>\n13.71<\/td>\n19<\/td>\n-0.1368 %<\/td>\n2,951.0<\/td>\n<\/tr>\n
FloatingReset<\/td>\n10.43 %<\/td>\n10.92 %<\/td>\n33,023<\/td>\n8.87<\/td>\n2<\/td>\n-0.1695 %<\/td>\n2,390.3<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n6.91 %<\/td>\n6.45 %<\/td>\n284,548<\/td>\n12.98<\/td>\n1<\/td>\n0.1972 %<\/td>\n2,337.6<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0912 %<\/td>\n2,170.4<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.99 %<\/td>\n7.49 %<\/td>\n71,558<\/td>\n11.99<\/td>\n11<\/td>\n0.1204 %<\/td>\n2,301.7<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
GWO.PR.P<\/td>\nInsurance Straight<\/td>\n-2.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 21.38
\nEvaluated at bid price : 21.65
\nBid-YTW : 6.28 %<\/td>\n<\/tr>\n
BN.PF.G<\/td>\nFixedReset Disc<\/td>\n-1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 14.50
\nEvaluated at bid price : 14.50
\nBid-YTW : 9.48 %<\/td>\n<\/tr>\n
BN.PF.H<\/td>\nFixedReset Disc<\/td>\n-1.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 20.85
\nEvaluated at bid price : 20.85
\nBid-YTW : 8.24 %<\/td>\n<\/tr>\n
PWF.PF.A<\/td>\nPerpetual-Discount<\/td>\n-1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 18.25
\nEvaluated at bid price : 18.25
\nBid-YTW : 6.19 %<\/td>\n<\/tr>\n
BN.PR.X<\/td>\nFixedReset Disc<\/td>\n-1.29 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 14.56
\nEvaluated at bid price : 14.56
\nBid-YTW : 8.32 %<\/td>\n<\/tr>\n
IFC.PR.K<\/td>\nPerpetual-Discount<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 21.32
\nEvaluated at bid price : 21.32
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n
GWO.PR.Q<\/td>\nInsurance Straight<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 20.67
\nEvaluated at bid price : 20.67
\nBid-YTW : 6.29 %<\/td>\n<\/tr>\n
FTS.PR.K<\/td>\nFixedReset Disc<\/td>\n-1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 15.82
\nEvaluated at bid price : 15.82
\nBid-YTW : 8.11 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n-1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 11.80
\nEvaluated at bid price : 11.80
\nBid-YTW : 8.23 %<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset Disc<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 17.37
\nEvaluated at bid price : 17.37
\nBid-YTW : 7.58 %<\/td>\n<\/tr>\n
MFC.PR.Q<\/td>\nFixedReset Ins Non<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 7.49 %<\/td>\n<\/tr>\n
BIP.PR.E<\/td>\nFixedReset Disc<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 21.30
\nEvaluated at bid price : 21.30
\nBid-YTW : 7.19 %<\/td>\n<\/tr>\n
PWF.PR.O<\/td>\nPerpetual-Discount<\/td>\n1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 22.78
\nEvaluated at bid price : 23.06
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset Disc<\/td>\n1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 17.95
\nEvaluated at bid price : 17.95
\nBid-YTW : 7.48 %<\/td>\n<\/tr>\n
RY.PR.J<\/td>\nFixedReset Disc<\/td>\n1.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 18.25
\nEvaluated at bid price : 18.25
\nBid-YTW : 7.54 %<\/td>\n<\/tr>\n
TD.PF.K<\/td>\nFixedReset Disc<\/td>\n1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 7.05 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset Disc<\/td>\n1.58 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 15.40
\nEvaluated at bid price : 15.40
\nBid-YTW : 8.54 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset Disc<\/td>\n1.69 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 18.66
\nEvaluated at bid price : 18.66
\nBid-YTW : 7.35 %<\/td>\n<\/tr>\n
TD.PF.J<\/td>\nFixedReset Disc<\/td>\n1.89 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 21.55
\nEvaluated at bid price : 21.55
\nBid-YTW : 6.71 %<\/td>\n<\/tr>\n
BN.PF.D<\/td>\nPerpetual-Discount<\/td>\n2.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 19.25
\nEvaluated at bid price : 19.25
\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n
BN.PR.B<\/td>\nFloater<\/td>\n3.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 12.05
\nEvaluated at bid price : 12.05
\nBid-YTW : 9.88 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
\nTraded<\/td>\n		Notes<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset Ins Non<\/td>\n33,699<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 17.81
\nEvaluated at bid price : 17.81
\nBid-YTW : 7.49 %<\/td>\n<\/tr>\n
MFC.PR.Q<\/td>\nFixedReset Ins Non<\/td>\n33,141<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 19.00
\nEvaluated at bid price : 19.00
\nBid-YTW : 7.49 %<\/td>\n<\/tr>\n
BMO.PR.E<\/td>\nFixedReset Disc<\/td>\n30,128<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 20.62
\nEvaluated at bid price : 20.62
\nBid-YTW : 7.05 %<\/td>\n<\/tr>\n
NA.PR.W<\/td>\nFixedReset Disc<\/td>\n29,590<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 16.44
\nEvaluated at bid price : 16.44
\nBid-YTW : 7.81 %<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset Disc<\/td>\n26,704<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 17.31
\nEvaluated at bid price : 17.31
\nBid-YTW : 7.59 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset Disc<\/td>\n23,997<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 17.00
\nEvaluated at bid price : 17.00
\nBid-YTW : 7.91 %<\/td>\n<\/tr>\n
There were 17 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset Disc<\/td>\nQuote: 17.09 – 19.27
\nSpot Rate : 2.1800
\nAverage : 1.5677<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 17.09
\nEvaluated at bid price : 17.09
\nBid-YTW : 7.87 %<\/td>\n<\/tr>\n

BN.PF.C<\/td>\nPerpetual-Discount<\/td>\nQuote: 18.85 – 20.58
\nSpot Rate : 1.7300
\nAverage : 1.2777<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 18.85
\nEvaluated at bid price : 18.85
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n

BN.PF.H<\/td>\nFixedReset Disc<\/td>\nQuote: 20.85 – 22.25
\nSpot Rate : 1.4000
\nAverage : 1.0077<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 20.85
\nEvaluated at bid price : 20.85
\nBid-YTW : 8.24 %<\/td>\n<\/tr>\n

BN.PF.J<\/td>\nFixedReset Disc<\/td>\nQuote: 21.45 – 22.40
\nSpot Rate : 0.9500
\nAverage : 0.6453<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 21.45
\nEvaluated at bid price : 21.45
\nBid-YTW : 7.29 %<\/td>\n<\/tr>\n

CM.PR.T<\/td>\nFixedReset Disc<\/td>\nQuote: 23.00 – 24.00
\nSpot Rate : 1.0000
\nAverage : 0.8056<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 22.50
\nEvaluated at bid price : 23.00
\nBid-YTW : 6.84 %<\/td>\n<\/tr>\n

IFC.PR.K<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.32 – 22.25
\nSpot Rate : 0.9300
\nAverage : 0.7811<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2053-04-11
\nMaturity Price : 21.32
\nEvaluated at bid price : 21.32
\nBid-YTW : 6.22 %<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Pablo Hern\u00e1ndez de Cos, Governor of the Bank of Spain, gave a speech titled Latest monetary policy developments in the euro area: We also provided more detail on what will guide our assessment of the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-45136","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/45136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45136"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/45136\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}