Rates will need to rise faster to prevent sticky inflation, BoE official warns June 20, 2022 Interest rates will need to rise faster to stop inflation from being “embedded” in the UK economy over the long-run, a top Bank of England official warned today. Catherine Mann, a member of the Bank’s nine-strong rate setting committee, said “a robust policy move… reduces the risk that domestic inflation already embedded is further boosted [...]
Bank of England drops mortgage market affordability test after less than a decade June 20, 2022 The Bank of England said this morning that its Financial Policy Committee will withdraw the so-called mortgage market affordability test. “Following its latest review of the mortgage market, the Financial Policy Committee has confirmed that it will withdraw its affordability test Recommendation,” the BoE said in a statement. This will come into effect from 1 [...]
UK inflation to bump above 40-year high on soaring food and energy prices June 20, 2022 The cost of living in the UK bumped above an already 40-year high last month driven higher by soaring energy and food prices. That’s according to the City’s consensus prediction of Wednesday’s new inflation figures from the Office for National Statistics (ONS). Analysts expect prices to have climbed 9.1 per cent over the year to [...]
Recession concerns growing rapidly as central banks struggle to put inflation genie back in its bottle June 20, 2022 Despite attempts at a modest rebound on Friday, European markets still finished lower for the second week in succession, posting their lowest weekly closes since March. US markets also finished the week similarly mixed, but also sharply lower, with the S&P500 posting its worst week since March 2020, ahead of the Juneteenth long weekend. “As [...]
Central banks face tough journey to ‘Goldilocks’ policy setting June 19, 2022 Goldilocks found the perfect bowl of porridge through trial and error. The US Federal Reserve, Bank of England and the rest of the central banking elite are following a similar rationale right now. They are grasping for that “just-right” policy setting which allows an economy to reach its full potential without knowing what that setting [...]
Treasury chief warns against pay rises as thousands expected to protest in capital over cost of living crisis June 18, 2022 Treasury chief Simon Clarke has warned against staff pay rises, suggesting that Brits should avoid "unrealistic expectations around pay".
Bank of England prepared for ‘aggressive’ action to tackle inflation, says top economist June 17, 2022 The Bank of England's chief economist said policymakers are ready to take “aggressive action” if there is further evidence that soaring inflation is becoming embedded in pricing by firms.
Bank of England hikes rates for fifth time in a row and warns of 11 per cent inflation surge June 16, 2022 The Bank of England today hiked interest rates for the fifth time in a row for the first time since it was given control of monetary policy a quarter of a century ago as it pushes to cool the highest rise in living costs for a generation. A majority of the Bank’s nine rate setters, [...]
Solvency II shakeup will boost UK insurers’ competitivity, Bank of England exec says June 15, 2022 A high-ranking exec from the Bank of England’s (BoE’s) financial services watchdog has said the government’s plans to overhaul Solvency II will boost the insurance sector competitivity. Charlotte Gerken, executive director of insurance at the BoE’s Prudential Regulation Authority (PRA), said the government’s plans for reforms of Solvency II will increase the UK insurance sector’s [...]
Central banks must front-load rate hikes to tame inflation, Carney warns June 15, 2022 The world’s biggest central banks need to dial up the pace of rate hikes to shake inflation out of their respective economies, the former chief of the Bank of England said today. Canadian banker Mark Carney, 57, who led Threadneedle Street from 2013 to 2020, told Bloomberg that monetary authorities “need to start moving more [...]