Gradual or glacial: When will the next Bank of England interest rate hike come? | City A.M. August 2, 2018 What does “gradual” mean? This is one of the key pre-occupations of forecasters right now, given central banks are emphatically emphasising that any normalisation of policy will be gradual. And yet the meaning seems to differ wildly. For the US Federal Reserve gradual appears to signify 0.25 percentage points of tightening per quarter. According to [...]
Bank of England raises interest rates with unanimous vote | City A.M. August 2, 2018 The Bank of England’s monetary policy committee (MPC) has voted unanimously to raise interest rates for the first time since before the financial crisis. Governor Mark Carney led the first unanimous vote to raise since May 2007, with bank rate, the main interest rate, moving up by 0.25 percentage points to 0.75 per cent, while [...]
The Bank of England has an excuse for unreliable boyfriend syndrome | City A.M. August 2, 2018 If the Bank of England does not increase interest rates today, be prepared for fresh criticism of its forward guidance. Governor Mark Carney could once again find himself labelled an “unreliable boyfriend”. But the critics sharpening their knives should pause for thought. Read more: HIKE: Economists say it is time for the Bank of England [...]
HIKE: The shadow MPC says it is time for the Bank of England to raise interest rates | City A.M. August 1, 2018 The Bank of England is widely expected to hike interest rates tomorrow after delaying a move in May in light of a modest growth rebound and a tight labour market. City A.M.’s shadow monetary policy committee (MPC) believes the time is right on balance, although with a split between economists which is likely to be [...]
Nationwide House Price Index ticks up – but economists urge caution | City A.M. August 1, 2018 Annual house price growth has climbed ahead of a possible rate rise this month, according to the Nationwide House Price Index. Prices in July rose by an average of 2.5 per cent, up from two per cent in June. It comes just a day before the Bank of England’s monetary policy committee (MPC) meets to [...]
How the Bank of England’s (BoE) monetary policy committee (MPC) are expected to vote | City A.M. July 30, 2018 The Bank of England is widely expected to raise the policy rate to 0.75 per cent on Thursday. This would be the second rate hike in a decade and take the policy rate to its highest level since 2009. Recent data have improved, but with some pockets of weakness still evident and ongoing lack of [...]
Mortgage approvals jump to five-month high as subdued market picks up | City A.M. July 30, 2018 Mortgage approvals hit a five-month high in June as Britain’s housing market shows signs of recovery from a slowdown earlier this year. British lenders approved 65,619 mortgages in June, rising 1.5 per cent from 64,684 in May and reaching the highest level since January, according to data from the Bank of England (BoE). Meanwhile, the [...]
Carney says Brexit planning takes up 50 per cent of his time July 30, 2018 Bank of England (BoE) governor Mark Carney said that Brexit takes up “50 per cent of my time now” according to an interview published today. Carney made clear that while Brexit planning means now less time for other things, the Bank has a responsibility to “manage through the downside if there is a disorderly outcome”, [...]
Bank of England: Economists split as monetary policymakers set out into the unknown | City A.M. July 30, 2018 The Bank of England is widely expected to raise interest rates on Thursday, but the decision by the monetary policy committee (MPC) is likely to be one of the most controversial in recent memory. While most City observers now think rates will rise, economists are split as to whether hiking borrowing costs amid a weak [...]
Relax – there’s no sign of the City of London losing its euro clearing crown despite Deutsche Bank job moves | City A.M. July 30, 2018 How many jobs will London’s financial sector lose as a result of Brexit? This longstanding question, attracting wildly different estimates, remains far from being answered. Prior to the referendum, several five- and even six-figure numbers were bandied around, while recently much smaller estimates have been touted. Just last week Bank of England deputy governor Sam [...]