Bank of England
Bank of England
May 11, 2017
The Monetary Policy Committee kept its Bank Rate at 0.25% and did not modify the limits of its quantitative stimulus. As she had done at the prior meeting in March, Kristin Forbes cast a sole dissenting vote in favor of hiking the interest rate to 0.50%, which resulted in a 7-1 verdict. A statement of […] More
Softer Pound
May 11, 2017
Sterling fell 0.4% against the dollar overnight. The ten-year British gilt yield has firmed two basis points, and the Ftse is little changed. The Bank of England left policy unchanged but suggesting greater monetary policy tightening during the forecast period than is implied in market interest rates. Several British economic statistics were reported. Similar to […] More
Bank of England
March 16, 2017
The Monetary Policy Council agreed again to leave its Bank Rate at 0.25%, but the vote drew a dissent for only the second time in the past dozen meetings. The dissent by Kristin Forbes, who favored a 25-basis point rate increase to 0.50%, was the first one she has cast since joining the MPC. Policymakers […] More
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
