Bank of England remains reluctant to end monetary policy by committee August 7, 2013 Mark Carney hasn't been in the job that long, and it's all change at the Old Lady. We've now got an unemployment yardstick of 7 per cent and an effective inflation upper limit of 2.5 per cent. But this doesn't kick in properly until 2015. Inflation is already at 2.9 per cent, with unemployment up [...]
Initial analyst responses to Bank of England inflation report and Q&A August 7, 2013 Some reactions to the Bank of England's quarterly inflation report and governor Mark Carney's announcement of a forward guidance policy. Joe Rundle, head of trading at ETX Capital: Sensible Fed-style strategy adopted by dovish governor BOE Mark Carney, switching things up at the Bank of England since his occupancy started in July. At the press [...]
Bank of England: Funding for Lending has been a success August 7, 2013 The Monetary Policy Committee of the Bank of England has said that the Funding for Lending scheme has achieved the objective of creating a situation in which funding no longer holds back bank lending. Governor Mark Carney said that, while the bank does not know what shocks the UK economy will face over the next [...]
Bank governor Carney says we’re not at escape velocity August 7, 2013 Bank of England governor Mark Carney has said that the UK is not yet at "escape velocity" but is approaching average after weak performance. Carney said that he was not expecting a material increase in borrowing as the UK recovers, and that prolonged periods of low rates pose stability risks. To give some perspective to [...]
German industrial production easily beats expectations reaching 14-month high August 7, 2013 German industrial production figures smashed expectations in June, rising by half a percentage point year-on-year and 2.4 per cent from the month before. This follows a 1.0 per cent fall in annual data and an upwardly revised 0.8 per cent monthly figure. Analysts had expected a decline of 0.4 per cent and an increase of [...]
Bank of England’s Carney and Dale defend first part of Help to Buy August 7, 2013 Bank of England governor has said he is watching the Help to Buy scheme and the housing market closely. He said it's important to see the recent developments in context – with mortgage applications still below the long term average for example. The MPC’s Spencer Dale, executive director and chief economist at the bank, said [...]
Bank of England governor says UK recovery the slowest on record August 7, 2013 Bank of England governor Mark Carney has said the Monetary Policy Committee does not see GDP won’t reach its precrisis peak until next year – the slowest recovery on record. The MPC expects annual growth to be 2.4 per cent in two year’s time – still a little below the historical average. Inflation is expected [...]
Government borrowing costs up and pound down as Bank introduces forward guidance August 7, 2013 (Source: Tradeweb) We've seen some immediate reaction in bond markets as the Bank of England has announced some forward guidance. Government borrowing costs jumped from 2.436 per cent to 2.491 per cent. The pound dropped sharply against the dollar on the news.
Bank of England rates unlikely to increase until second half of 2016 August 7, 2013 The Bank of England has introduced a US Fed style unemployment threshold, of seven per cent. Some analysts had anticipated this. UK unemployment was at 7.8 per cent in the three months to May. So we'd need about 750,000 more jobs to be created. In particular, the MPC intends not to raise Bank Rate from [...]
Lost in translation: Tensions between UK and Spain over Gibraltar high as ever August 7, 2013 Reports of progress on de-escalating the tension between Spain, the UK and Gibraltar over proposals to introduce a border charge following a fishing dispute seem to have been lost in translation somewhere. This comes as the UK and Spanish government release potentially contradictory responses to the outcome of a phone call from UK prime minister [...]