Bank of England

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

Bank of England Defers Policy Easing to August

July 14, 2016

The dominant market expectations earlier this week had been that the Bank of England’s Bank Rate, which has been at 0.50% since March 2009, would be cut at today’s meeting.  An expansion of quantitative easing was also thought likely.  The GBP 375 billion ceiling on the asset purchase program was reached in late 2012.  These […] More

Surprise, Surprise, Surprise!

July 14, 2016

Surprise #1: Latest U.S. presidential opinion polls show the race between Trump and Clinton too close to call in key swing states, despite much greater political ad spending by the Democrats.  Trump said he will unveil his VP choice Friday at 11:00 am EDT. Surprise #2:  Rising from the ashes, Boris Johnson was named British […] More

A Broadening Sense of Relief

July 13, 2016

Global stocks recorded a fifth straight session of appreciation.  Industrial commodities continued to rally as well. The dollar is marginally softer.  Investors are relieved that the succession of British governments is occurring more quickly than feared and feel confident that Theresa May is the right person to lead the U.K. through its exit from the […] More