Bank of England

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

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