BoE’s Cunliffe: ‘Not our job’ to protect banks from digital currencies November 13, 2020 Bank of England deputy governor Jon Cunliffe has said it is not the bank’s job to protect other banks from the impact of future digital currencies. Speaking an on online seminar today, Cunliffe said: “Our job is not to protect bank business models. Banks will have to adjust. Our job is to ensure that if [...]
BoE warns insurers are being ‘optimistic’ in Covid-19 estimates November 13, 2020 Insurers risk being optimistic in estimating losses from Covid-19 related claims and should stress-test their underlying assumptions, the Bank of England has warned. In a letter to insurers today, the BoE set out its findings from a review across the general insurance sector on reserving, managing exposures and dealing with uncertainty over contracts in light [...]
Tradition goes digital as city of london carol service raises money for four charities November 13, 2020 Joined by HRH Prince Edward on Tuesday 8 December 2020 Christmas carols and church services are a mainstay of the festive period, as we gather together with mulled wine and mince pies to sing songs and listen to readings. `It is a tradition of the City of London for many of its Livery Companies and [...]
When did central banks decide that abnormal monetary growth doesn’t matter anymore? November 13, 2020 With many countries’ economies still suffering from the effects of the coronavirus pandemic, or even — as in the UK — still under large-scale lockdown, another fall in spending and output in the autumn is expected. Worryingly, policymakers around the world only seem to be concerned about the short-term impact of the lockdowns, and appear [...]
UK regulators prepared to intervene if Brexit disrupts markets, says FCA November 12, 2020 British regulators are prepared to intervene if the UK’s full departure from the European Union on 31 December risks disrupting financial markets, an executive from the Financial Conduct Authority (FCA) said. While Britain has already left the bloc, post-Brexit transition agreements gives banks and trading platforms full access to EU markets until the end of [...]
Legal & General shares fall after insurer scales back dividend plans due to Covid-19 November 12, 2020 Shares in Legal & General fell today after the insurance giant kept its final dividend payment for 2020 flat due the impact of the coronavirus pandemic and cut its five-year dividend growth target. In an update to the stock exchange this morning, Legal & General said it had delivered a “resilient” performance so far this [...]
Disappointing GDP figures show UK recovery lost momentum ahead of second lockdown November 12, 2020 UK GDP grew by a record quarterly amount in the three months to September, but failed to make up for its historic slump the previous quarter as Covid-19 brought large swathes of the economy to a halt. The UK economy grew by a record 15.5 per cent in the third quarter, the Office for National [...]
Brexit news could change outcome of BoE’s December meeting, says Bailey November 12, 2020 Developments in the ongoing trade talks between the UK and EU could affect the chance of the Bank of England’s monetary policy committee (MPC) taking action at its December meeting, governor Andrew Bailey said. Asked if Brexit developments could make the MPC’s next meeting “live”, Bailey said: “I’m sure we will have more information, so [...]
‘Positive evidence’ on negative interest rates, says BoE policymaker Tenreyro November 11, 2020 Bank of England policymaker Silvana Tenreyro said there was “positive evidence” that negative interest rates could help banks and the wider economy amid the downturn caused by Covid-19. “The positive evidence related to negative interest rate policy comes from Europe, where it has worked fairly well,” Tenreyro said in an interview with the Yorkshire Post. [...]
Andy Haldane: Gap between poor and rich to be ‘stretched’ in wake of pandemic November 10, 2020 The Covid-19 crisis will likely “stretch” the income gap between the rich and poor, according to Bank of England chief economist Andy Haldane. Speaking in a Channel 4 interview, Haldane, who is a member of the Bank’s Monetary Policy Committee and chair of the government’s Industrial Strategy Council, said the pandemic would likely lead to [...]