Bank of England

Bank of England: No Change in Policy Settings by Unanimous Consensus

June 16, 2016

The BOE’s Bank Rate has been 0.5% since March 2009.  The Brexit referendum a week from today represents an enormous uncertainty overhanging future policy.  A final large paragraph from the Monetary Policy Committee’s statement has this to day about the potential effect on policy of that vote. As the Committee set out last month, the […] More

Bank of England Leaves Policy Settings Unchanged and Warn Sternly about Dangers of Leaving EU

May 12, 2016

Members of the Monetary Policy Committee were unanimous in retaining a 0.5% Bank Rate and GBP 375 billion limit on the asset purchase program.  Inflation of 0.5% is only a fourth of the 2.0% medium-term target, and the growth slowdown last quarter is projected to extend further in the current one.  Downside external risks will […] More

Lower Yen and Stronger Norwegian Krone as Oil Recovers

May 12, 2016

WTI oil rose 0.9% to a six-month high above $46/barrel after indications of a diminishing supply glut.  Comex gold fell 0.5% overnight. The dollar rebounded 1.4% against the yen.  Norway’s krone advanced 1.1% against the euro.  The dollar climbed 0.6% relative to the Aussie dollar but is narrowly mixed versus sterling, the Swiss franc, the […] More

Bank of England: No Change

April 14, 2016

In 2016, communication by the Monetary Policy Committee has changed but not the stance of policy.  Policymakers now release a detailed statement of explanation instead of the old system of deferring details except when changing the interest rate to published minutes, which used to be delayed by two weeks. The Bank Rate of 0.5% since […] More

Bank of England

March 17, 2016

The Monetary Policy Committee approved by a unanimous vote to keep the U.K. Bank Rate at 0.50% and leave the Asset Purchase Program ceiling unchanged at GBP 375 billion.  Like Fed officials yesterday, the committee acknowledges external downside risks while observing that domestic economic elements like wages have been evolving much as anticipated.  Inflation is […] More

Bank of England: No Policy Changes, Downward Revisions to Projected Growth and Inflation, and a Dovish Message Overall

February 4, 2016

The Bank of England’s nine-person Monetary Policy Committee was unanimous for the first time in seven monthly meetings in voting not to raise, or lower, the 0.50% Bank Rate, which has been at that level since March 2009. Ian McCafferty had voted for a 25-basis point hike at the six previous meetings.  Policymakers released a […] More

Bank of England

January 14, 2016

Ian McCafferty remains the odd man out on Britain’s Monetary Policy Committee.  Only he preferred to raise the Bank Rate from the 0.5% level that it has been at since March 2009.  U.K. growth has been decent but total inflation remains far below the 2% target, and core is also subdued.  A released statement observes […] More

Bank of England

December 10, 2015

Policy was again left unchanged by the nine-member Monetary Policy Committee.  The Bank Rate has been 0.5% since March 2009.  Only Ian McCafferty voted to raise such, as he also did at the four prior monthly MPC meetings.  The GBP 375 billion asset purchase program was last raised in July 2012 and reached by the […] More

Bank of England

November 5, 2015

The Monetary Policy Committee combined many public communications into a single day, conveying a lack of urgency especially vis-a-vis the Federal Reserve, to begin the process of rate normalization. The policy statement released after this month’s two day meeting left settings unchanged and revealed that only Ian McCafferty among the nine committee members wanted to […] More

An Informing Day with Some Surprises

November 5, 2015

U.S. labor productivity unexpectedly rose last quarter and substantially so at that.  A gain of 1.6% on top of a 3.5% second-quarter increase resulted in a significantly smaller quarter-over-quarter 1.4% climb in unit labor costs.  Nonetheless, the big productivity picture remains soft, with a rise of just 0.4% between 3Q14 and 3Q15 versus 0.8% in […] More