Bank of England

Bank of England

May 10, 2018

The latest Monetary Policy Committee meeting ended without any change in the 0.5% Base Rate or in the Bank of England’s GBP 10 billion of corporate bond purchases and GBP 435 billion ceiling on gilt purchases. The released statement explaining this decision was accompanied by a new quarterly Inflation Report. After the MPC last reviewed […] More

Bank of England

March 22, 2018

The surprising element is the latest monetary policy review was not that the Bank Rate was left at 0.5% or that no change was made to the stock of bank holdings of gilts and corporate bond purchases. It is that the decision to leave the interest rate as is drew dissenting votes from McCafferty and […] More

Trade War Fear Takes Center Stage

March 22, 2018

While Fed Chairman Jay Powell downplayed the risk to growth from trade restraints at least insofar as any influence on U.S. monetary policy is concerned, global financial markets are taking the danger of a trade war very seriously, particularly as President Trump seems poised to slap $50 billion of tariffs on imported Chinese goods. There’s […] More

Bank of England

February 8, 2018

As had been expected, the Monetary Policy Committee by unanimous consent did not change policy settings. The Bank Rate has been 0.50% since being doubled three months ago in a move that reversed the 25-basis point cut in August 2016 shortly after Brexit was approved narrowly by citizen referendum. Ceilings of GBP 435 billion on […] More

Bank of England

December 14, 2017

The Bank of England was not expected to tighten policy at consecutive monthly meetings, and the Monetary Policy Committee was unanimous in voting to retain a 0.50% bank rate and leave asset purchase ceilings as they’ve been. A statement¬†gives a thumbs up to recent progress in the Brexit talks and for Chancellor Hammond’s budget that […] More

Bank of England Lifts Interest Rate as Expected

November 2, 2017

The Bank Rate was doubled to 0.50% because of a “steady erosion of slack” that “has reduced the degree to which it is appropriate for the MPC to accommodate an extended period of inflation above the target.” At 0.50%, the rate is back to the level prevailing from March 2009 until being halved in August […] More

Markets Assuming Powell Getting Named Fed Chair

November 2, 2017

President Trump will formally announce his choice of Federal Reserve chairperson today at 15:00 EDT. The worst kept secret is that Jerome Powell will likely get the nod. Although a lawyer by training, his career has been immersed in financial markets. Other top news: Euroland’s October purchasing managers index rose 0.4 points to an 80-month […] More

Bank of England Escalates Hint that Gradual Tightening is Coming Maybe Soon

September 14, 2017

¬†A majority of MPC members judge that, if the economy continues to follow a path consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflationary pressure then, with the further lessening in the trade-off that this would imply, some withdrawal of monetary stimulus is likely to be appropriate […] More

Some Fresh Developments

September 14, 2017

The Bank of England’s Monetary Policy Committee did not change interest rates or asset purchase parameters but signaled a growing probability of a rate increase within a couple of months. In response, sterling rose 0.8% against the dollar, the 10-year British gilt yield climbed three basis points to 1.17%, and the Ftse stock index declined […] More

Bank of England Leaves Policy Settings as Is But Paints a Difficult Future

August 3, 2017

The Bank of England held a meeting of the Monetary Policy Committee and released a quarterly Inflation Outlook. Officials… Kept the Bank Rate at 0.25%, its level since a 25-basis point cut a half year ago. Didn’t change the GBP 435 billion ceiling on gilt purchases. Such was raised by GBP 60 billion last February. […] More

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