Bank of England

Bank of England Keeps Existing Stance

February 2, 2017

At the second post-Brexit referendum meeting of the 9-person Monetary Policy Committee, officials halved the Bank Rate to 0.25%, expanded the asset purchase program by 60 billion pounds to a ceiling of GBP 435 billion, and introduced a plan to purchases up to GBP 10 billion of corporate bonds. Four subsequent meetings and two published […] More

Dollar Falls Broadly Except Against Sterling

February 2, 2017

The dollar lost 1.2% against the Australian dollar, 0.8% relative to the euro, 0.7% vis-a-vis the yen, 0.5% versus the kiwi, 0.6% against the Mexican peso, 0.4% relative to the Swissie, and 0.3% versus the loonie. The Aussie dollar was lifted by report of a much greater-than-forecast A$ 3.51 billion Australian trade surplus in December, […] More

Bank of England

December 15, 2016

A statement following the latest meeting of the Monetary Policy Committee reveals that policymakers voted unanimously to retain present policy parameters: a 0.25% Bank Rate, an incremental GBP 60 billion program of gilt purchases bringing such to a new limit of GBP 435 billion, and the planned purchase of GBP 10 billion of corporate debt. […] More

Broad Financial Market Adjustments Intensify in Wake of FOMC Meeting

December 15, 2016

The dollar gained overnight by another 2.0% against the Australian dollar, 1.5% versus the euro, 1.6% vis-a-vis the kiwi, 1.2% relative to the yen, 0.9% against sterling, and 0.6% versus the yuan. Key levels are being approached such as parity with the euro, 120 yen, and 7 renminbi. Throughout the 8-year Obama stewardship, Republicans fought […] More

Bank of England Unanimously Keeps Policy Unchanged

November 3, 2016

The Monetary Policy Committee decided to make no changes to the three elements of its accommodative stance. A Bank Rate of 0.25%, which had been halved in August. A mandate to purchase an additional 60 billion pounds of British gilts on top of the GBP 375 billion it earlier had acquired. Plans to buy GBP […] More

Several Developments to Watch

November 3, 2016

A few new U.S. political polls show Clinton still leading, but the race has narrowed, leaving the eventual outcome in doubt. The Mexican peso trimmed its recent losses. Britain may get softer Brexit terms after all. A U.K. court has ruled that parliament must vote on the invocation of Article 50, which will begin the […] More

Bank of England Enacts No Policy Changes this Time

September 15, 2016

The third Post-Brexit meeting of the Monetary Policy Committee has been held. The one in July made no immediate changes, adopting a wait and see approach instead. In August, three kinds of stimulus were unveiled: a halving of the Bank Rate to 0.25%, a GBP 60 billion expansion of the government security purchase plan to […] More

Central Bank Decisions in the U.K., Ukraine and Switzerland.. Now Awaiting U.S. Data

September 15, 2016

The Bank of England left monetary policy unchanged, acknowledged better-than-expected short-term U.K. indicators since the August meeting, but left the door open to a possible further interest rate cut. The National Bank of Ukraine reduced its policy interest rate by 50 basis points to 15.0% and indicated likely further easing if and as inflation recedes. […] More

Bank of England Approves a Package of Easing Measures

August 4, 2016

Although criticized for meddling in national politics and overstating the dangers, Bank of England Governor Carney’s pre-referendum warning against the economic consequences of a voter decision to leave the European Union have proven to be spot on accurate.  It now falls to the central bank to do “whatever it takes” to counter those repercussions.  At […] More

Sterling Falls after Bank of England Eases

August 4, 2016

The mixed dollar shows gains of 1.4% against sterling, 0.3% versus the euro, 0.2% relative to the yuan and 0.1% vis-a-vis the yen, loonie and Swiss franc but losses of 0.9% against the Australian dollar, over 1.0% versus the rand and 0.4% vis-a-vis the kiwi. Share prices have risen 1.1% in Japan, 1.7% in Spain, […] More

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