Premier Miton CIO Neil Birrell said ECB President Lagarde will step down on Feb. 7 next year; the ECB held rates today. Her successor will inherit a market that broadly expects the ECB may raise rates through next year. The ECB noted energy prices present upside inflation risk and downside growth risk, creating a challenging opening policy trade-off that will require precise timing to avoid lagging or moving prematurely.

SC crude oil main contract down 2.00% intraday at 721.10 yuan/barrel.

Fed Chair Kevin Warsh rejected the view that the Fed’s decision today not to raise rates signals weakened resolve on inflation. He said the Fed will not adopt a looser inflation target and warned that inflation’s full impact on consumers can take up to six years to emerge. Warsh noted consumers are already feeling pressure from higher fuel costs and that near-term inflation expectations are rising, but said households and firms remain confident in the Fed’s ability to maintain price stability.