MADRID | The Corner | UK Consumer Prices Index (CPI) grew by 1.9% in the year to June 2014, up from 1.5% in May, according to official data released on Tuesday, almost reaching the Bank of England’s 2% target and strenghtening the case for a rise in interest rates which have been held at a record low of 0.5%.
Bank of England
MADRID | By Bankinter analysts | According to Rightmove, housing prices in the UK rose by +0.1% m/m in June versus previous +3.6%. Thus, the year-on-year rate slows down to 7.7% from 8.9%. In such context, Bank of England’s minutes will be particularly relevant this week, especially after Mr Carney said that the rise in interest rates will come sooner than markets expect.
By David Denton | The Richter Scale | The UK QE has merely allowed the banks to off load UK government debt and replace this with other government debt, helping to keep bond prices high but having no impact on the real economy, other than to keep interest rates artificially low.
By Tania Suárez, in Madrid | Next Wednesday takes place the second Long-Term Refinancing Operation (LTRO) by the European Central Bank. The hot spot is the participation of some British banks, such as Lloyds and RBS (according to FT), which didn’t take part in the last liquidity auction thanks to the central bank of the United Kingdom. The end of its QE programme has forced RBS and Lloyd to forecast…