Blame the bank: How finance caused today’s housing crisis October 18, 2018 Home ownership is increasingly out of the reach of younger adults in the UK. The share of those aged 25-34 who own their home fell from 55 per cent in 1997 to 35 per cent in 2017, according the Institute of Fiscal Studies. A decade of stagnant wage growth means that the gradual house price [...]
Debate: Are British high street banks a good opportunity for investors at the moment? September 26, 2018 Debate: Are British high street banks a good opportunity for investors at the moment? Yes – Richard Buxton is chief executive and a fund manager at Old Mutual Global Investors. As a long-term investor in UK banks, the most recent reporting season came as a welcome relief. The litany of conduct charges and regulatory [...]
Bank of England holds monetary policy unchanged amid “greater uncertainty”on Brexit September 13, 2018 The Bank of England today left monetary policy unchanged amid “greater uncertainty” in markets on the Brexit process and a worsening global trade outlook. The Bank's monetary policy committee (MPC) raised its main interest rate, bank rate, on 2 August, in only the second increase in the decade since the financial crisis began, but minutes [...]
European Central Bank “on track” to complete its €1 trillion quantitative easing programme August 13, 2015 The European Central Bank (ECB) is on course to complete its €1.1 trillion (£780bn) euro money printing programme, according to details of its most recent meeting. The ECB downplayed the risk to growth from recent economic turbulence in Greece and China, insisting its outlook remained broadly unchanged. Bank officials pointed to a recovery in bank [...]
As Japanese growth picks up pace, can we expect QE in the Eurozone to be as successful? May 20, 2015 Christian Schulz, senior economist at Berenberg, says Yes Since early 2013, when Japan’s QE became imminent, its average quarterly annualised GDP growth rate has risen to 1 per cent, from 0.2 per cent in 2011/12. In the Eurozone, with the European Central Bank (ECB) launching QE, GDP expanded by 1.6 per cent in the first [...]
ECB Executive Board Member Yves Mersch says QE stimulus won’t end early May 16, 2015 European Central Bank executive board member Yves Mersch has said it won't be ending its government bond buying programme prematurely, echoing comments made by boss Mario Draghi earlier this week. Mersch further dampened speculation the central bank's €1.1 trillion stimulus package would end early, saying this would cast doubts on its growth forecasts for the euro [...]
It’s baffling that Labour didn’t make more of QE in its election campaign May 15, 2015 George Osborne's management of the economy has been credited with winning the Conservatives the election. Despite repeated criticism and warnings of the dire economic consequences of his austerity policies from adversaries, he continued on. The Labour leadership majored on this theme in the first few years in opposition. In the early days of the [...]
Mario Draghi defends ECB policy decisions after QE rollout March 23, 2015 European Central Bank (ECB) chief Mario Draghi yesterday hit back at claims that new monetary policy measures would reduce the need for governments to undertake reforms, ultimately harming growth prospects. “Do you really think a high level of interest rates would form an incentive for a government to improve its education system, or judiciary, or [...]
Beware a taper tantrum after ECB QE – CNBC Comment March 23, 2015 Saying goodbye is one of the hardest things in life, especially when it is to a good friend who has brought you joy, peace of mind and, yes, profits. For investors over recent years, that friend has been easy monetary policy. St Louis Fed president James Bullard told CNBC yesterday that there was the potential [...]
Is the ECB speaking too soon in saying that QE is already helping the Eurozone economy? March 19, 2015 Danae Kyriakopoulou, an economist at the Centre for Economics and Business Research, says Yes Central bankers in Frankfurt have been patting each other on the back as the euro has continued to slide. At first glance, why shouldn’t they? Their QE has sent the euro tumbling, making Eurozone exports more competitive and raising prospects for [...]