Bank of England

In the World, World economy 2nd August 2024

Bank of England cuts rates by 25bp to 5%, as expected, but is slightly hawkish on further cuts

Bankinter: The Bank of England (BoE) has cut the Bank Rate by -25bp. to 5.0%, in line with expectations, but is sending a slightly hawkish message about further cuts. Assessment: Both the statement and Bailey’s press conference are non-committal on future moves and reiterate the need to maintain a sufficiently tight monetary policy to ensure that inflation remains at the +2% target. This rules out that the central bank will…

European economy 22nd March 2024

Bank of England keeps official interest rates unchanged with no voter in favour of rise

Banca March: Eight members of the Bank of England’s Committee yesterday supported maintaining the level of the cost of money at 5.25%, with only one in favour of a first cut. This marks the first meeting since September 2021 at which not a single voter has supported a rate hike. The governor of the Bank of England has stated that, although it is not yet time to cut rates, they…

European economy 10th April 2020

The Bank of England Will Finance The Budget

J.P.Marín Arrese | The Bank of England will provide direct cash to cover public expenses. Under the Ways and Means Facility, it already offers short-term liquidity to the Treasury. But, from now on, it will finance all budgetary commitments monetising the massive deficit the coronavirus crisis will bring about. Governor Andrew Bailey openly rejected this step a few days ago. Now, faced with the appalling evidence that a sharp increase in spending coupled with plummeting tax revenues will lead to substantial public imbalances, he has changed his mind.

In Europe 11th March 2020

The Unexpected Rate Cut By The Bank Of England Sends Clear Message Of Policy Accord With The Treasury

Ranko Berich (Monex Europe) | The macroeconomic policy orthodoxy of the past 30 years will likely lie in ruins by the end of today, as the Bank of England and Treasury embark on synchronized monetary and fiscal easing on an unprecedented scale. The timing and size of the move from the BoE come as a surprise to markets, and seem calculated to send a clear message of policy synchronization.

Which central bank blinks and cut rates first?

World economy 13th February 2020

Which Central Bank Blinks And Cuts Rates First?

TwentyFour Asset Management’s CEO Mark Holman thinks central banks will move on rates any time soon, but where the first move comes from might be harder to call. They are sure it will not be the UK, thank goodness and also sure it won’t be the ECB. It won’t be the US in the near future either.

Bank Of England to accelerate pace of interest rates rises

In Europe 2nd March 2018

Bank of England Barking Mad

The Bank of England has indicated that the pace of interest rate increases could accelerate if the economy remains on its current track. You have to wonder what the eminent experts on the MPC drink in their tea to be so off course about the current track of the UK economy.

In Europe 3rd November 2017

BoE Hikes Rates For First Time In A Decade Amidst Dim Prospects Of Economic Growth

The BoE hiked on Thursday interest rates for the first time in more than 10 years by 25 bp to 0.5%. Given that UK growth continues at its lower potential pace with GDP forecasts at around 1.6%-1.7% between 2017-20, it seems that only one additional hike next year is likely. The country has been the 4th weakest economy in the OECD so far this year.

In Europe 18th October 2017

UK Monetary Policy Is Too Tight: Easing Required

James Alexander | Not quite the line you will see across most of the market or amongst so-called monetarist economists. In fact, implied by actual nominal growth and expectations for nominal growth monetary policy is too tight. Nominal GDP growth is running at 3.7% YoY and falling, while the best measure of inflation around, the implied GDP deflator is running just below 2%.

In Europe 23rd May 2016

Brexit Won’t Change Britain

One month ahead of the referendum on EU membership, polls show no clear winner. The campaigners aiming to anchor the UK in Europe cannot match the warmongering messages from those eager to steer the country away from the continent.

In Europe 11th January 2016

George Osborne: I’m Proud Of You Today!

James Alexander via Historinhas | In a “currency war” it pays to be the loser. If you need an expansionary monetary policy, like most currency blocs today, don’t let anyone undercut with dirty devaluations. So, when a big baby like China decides to lower the value of its currency versus the biggest baby of all, the USD, make sure you are not caught in the cross fire.

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