As the Bank of England holds interest rates, is ultra-loose monetary policy a danger to financial stability? September 15, 2016 Baroness Altmann, a former pensions minister, says Yes. The Bank’s monetary policy is not only a potentially serious danger to financial stability, it also has damaging side effects that call into question the extent of easing it actually represents. The fallout from years of pushing both short and long rates lower is that capital markets and [...]
Critics round on Carney as ultra-low interest rates to last 13 years September 15, 2016 Mark Carney faced growing disquiet from the financial community today, as critics of his post-referendum stimulus package sharpened their attacks on the Bank of England governor. As the Bank's monetary policy committee (MPC) voted unanimously to hold interest rates at their record low of 0.25 per cent, a string of robust post-referendum data has led [...]
It’s eight years since the Lehman Brothers collapse. What’s changed? September 15, 2016 Eight years ago today US banking giant Lehman Brothers filed for bankruptcy. This was an unprecedented event in the modern financial world and it sent shock waves through global markets. We're still recovering from some of them. The bank's collapse has now entered the vocabulary as a term for when an industry has a potentially catastrophic moment. It is used again. And again. And again. And again (maybe it [...]
US interest rates: Weak data boosts case for another delay from the Fed September 15, 2016 The US has posted another uninspiring set of economic data, suggesting the slowdown in the world's most important economy is set to continue. Official figures on the manufacturing sector, retail sales and factory prices all came in below expectations this afternoon, just days before the US Federal Reserve is scheduled to vote on whether to [...]
Before the bell: What you need to know before the US market open September 15, 2016 The Bank of England has conformed to market expectations and held its key rate of overnight interest at 0.25 per cent, while Apple can't cook up iPhones fast enough. Here's what you need to know before the US market open at 2:30pm London time. US futures are pointing to a very health rise ahead of [...]
Hold fire: Bank of England leaves interest rates at 0.25 per cent but warns the economy may need further assistance September 15, 2016 The Bank of England has conformed to market expectations and held its key rate of overnight interest at 0.25 per cent. The nine-strong rate-setting Monetary Policy Committee (MPC) voted unanimously in favour of keeping rates on hold and maintaining its massive stimulus package. The rate was cut last month from 0.5 per cent as the Bank tried to [...]
Summer retail spend still strong following the Brexit vote September 15, 2016 Retail sales edged downwards in August following the nation's bumper spending spree in July – but sales were more than six per cent higher than last year, indicating consumers were still happy to spend after the Brexit vote. Excluding fuel, sales fell 0.3 per cent month-on-month in August, but sales were up 6.2 per cent on last year, [...]
What a summer: George Osborne’s epic fall from high office September 15, 2016 At the end of July, former Chancellor George Osborne delivered the annual Margaret Thatcher memorial lecture. Her legacy is mighty. What would his be? As he attempted to define it in front of a City audience in the magnificent Guildhall, he concluded that he had “much more to contribute to our nation's discussions in the [...]
Shadow MPC calls on Mark Carney to wait before pulling the trigger on another rate cut September 14, 2016 City economists have told Mark Carney to keep interest rates glued at their record low when the Bank of England meets today. City A.M.’s Shadow monetary policy committee (MPC) voted eight-to-one in favour of holding rates at 0.25 per cent, as experts said the governor and his fellow rate-setters should wait for more signs of [...]
US Presidential Election 2016: Would a Donald Trump presidency lead to a stronger US dollar? September 14, 2016 Currency analysts have suggested a Donald Trump presidency could cause the US dollar to strengthen. A Trump victory in November's election is expected to spook investors around the world, leading to an exodus from emerging markets and into safer assets, such as the US dollar and Japanese yen, analysts at Societe Generale and Nordic bank SEB. [...]