Mortgage approvals plummet March 1, 2010 LENDING to firms and households showed little sign of picking up in January from historically weak levels, in spite of a year of quantitative easing, Bank of England data showed yesterday. The Bank’s preferred measure of broad money growth M4, which excludes activity between intermediate financial institutions, stagnated in January. The annualised quarterly rate of [...]
Lending to households and firms was flat in January March 1, 2010 LENDING to firms and households showed little sign of picking up in January from historically weak levels, in spite of a year of quantitative easing, Bank of England data showed yesterday. The Bank’s preferred measure of broad money growth M4, which excludes activity between intermediate financial institutions, stagnated in January. The annualised quarterly rate of [...]
MPC may need to extend QE February 25, 2010 Further quantitative easing may be needed, the Bank of England’s David Miles said yesterday. He said: “It is entirely plausible that as economic events unfold it will become clear that an even more expansionary monetary policy will be appropriate.” Miles had voted in November for a £15bn extension but earlier this month agreed it should [...]
Rathbone reviews banking licence as profits dive 30pc February 24, 2010 RATHBONE Brothers has kicked off a formal review of the benefits of holding a banking licence as the prospect of tough regulatory changes looms. Chief executive Andy Pomfret told City A.M. the issue had been “on the radar” for some time, but explained: “What’s changing is there are likely to be changes in capital requirements. [...]
GILT MARKET REVEALS LESS DESIRABLE UK February 22, 2010 OVER the past two weeks, stock markets across Europe and the US have stabilised following a nasty New Year sell-off. The US fourth quarter earnings season began badly and this seemed to be the catalyst for an aggressive bout of profit-taking. Even as it became apparent that the vast majority of companies would end up [...]
Money supply growing again February 18, 2010 THE supply of broad money (M4) in the UK economy grew 0.6 per cent last month but lending remained flat, provisional data from the Bank of England showed yesterday. M4 lending grew just 0.1 per cent in January and lending excluding the effects of securitisations stagnated. The annual growth rate of broad money lending fell [...]
MPC in unanimous decision to pause QE programmes February 17, 2010 THE Bank of England’s Monetary Policy Committee (MPC) was united in its decision to pause its quantitative easing programme earlier this month, but minutes of the meeting indicated that for some members, the decision was a difficult one. The minutes showed that all nine members voted in favour of holding rates at 0.5 per cent and [...]
Era of cheap money is gone forever February 16, 2010 THERE is one, overwhelming reason why interest rates are going up on products such as credit cards, even though the Bank of England’s base rate remains very low. It has nothing to do with greed, bonuses, rip-off Britain or conspiracy theories – and all to do with the costs associated with the massive amounts of [...]
FOREX FLASH February 16, 2010 SWISSIE TO RALLY FURTHER DESPITE SNB Currency forecasters said that currency speculators are betting that the recent slide in the euro will hinder the Swiss National Bank’s (SNB) campaign to slow the rallying Swiss franc. Swiss central bank president Philippe Hildebrand has found it difficult to bring the Swissie’s appreciation under control as investors seeking [...]
Britain must not fork out for bailout February 10, 2010 THERE are two policies the British government must pursue over the looming bail-out of Greece and other weaker Eurozone countries, a move which looks increasingly likely and which will be debated in detail at today’s European summit. First, the government must make it clear that the UK taxpayer will not be put at risk. If [...]