Split between Bank of England governor Mark Carney and chief economist Andy Haldane puts August hike back on table June 21, 2018 The Bank of England’s chief economist broke ranks with the governor for the first time in seven years yesterday as he called for higher interest rates, putting a hike in August back in play. Andy Haldane was one of three hawks on the nine-member monetary policy committee (MPC) to vote to increase bank rate from [...]
Bank of England surprises with a hawkish hold June 21, 2018 When the Bank of England held rates at its May meeting it was merely reaffirming what governor Mark Carney had warned the markets about only a few weeks previously at the IMF meetings in Washington. Up until those comments by the Bank of England governor a rate rise was more or less a done deal [...]
Bank of England holds interest rates but chief economist Andy Haldane turns hawk in 6-3 vote June 21, 2018 The Bank of England’s top economists today voted to hold interest rates steady, but with a reduced majority of six votes to three as chief economist Andy Haldane added his weight to the calls to tighten monetary policy. The change of vote from Haldane will heighten expectations from City economists that the Bank is preparing [...]
Bank of England must hold interest rates and wait for signs of a rebound says shadow MPC June 20, 2018 City economists are all but certain the Bank of England will not announce a rise in interest rates tomorrow, with City A.M.’s shadow monetary policy committee (MPC) voting unanimously to hold fire. The Bank’s top economists have made it clear that they see rising upward pressures on wages, a key component of domestically generated inflation, [...]
Why Opec matters June 20, 2018 Whether we like it or not oil prices matter, as they affect everything connected with a modern economy, from movement of goods and services, to the amount of disposable incomes for ordinary consumers. That is why this week’s Opec meeting is important in the context of future direction for oil prices, which have risen over [...]
It’s been almost two years since the Brexit vote – where now for the pound? June 20, 2018 It's been an eventful two years to say the least. As our negotiators go to great lengths to untangle Britain from the European Union, no asset reflects this tumultuous journey more than sterling. In the fortnight after the June 2016 referendum, the pound plunged to $1.28 from $1.49. With most speculators pricing in a [...]
John McDonnell wants the Bank of England to target productivity growth to ‘reboot’ Britain June 20, 2018 The Bank of England (BoE) should widen its remit to task itself with boosting Britain’s fledging productivity, the shadow chancellor John McDonnell has said. Jeremy Corbyn’s number two said that if the Labour party won power it would consider asking the BoE to work on a three per cent productivity growth target, in what would [...]
Can slowing money growth stall markets? June 19, 2018 It’s fashionable for central banks to be more cautious in the West. TheFederal Reserve is busy putting up interest rates. Many forecast a move up from 2 per cent to 2.5 per cent this year and a further move to 3.25 per cent next year. Meanwhile, the US central bank is also reducing its own [...]
Can the UK economy cope with sustained house price falls? June 19, 2018 Brexit uncertainty is far from over. Indeed, as we approach the crunch point in negotiations over the summer, we expect rhetoric of hard Brexit and a cliff edge to reach a crescendo, before a final deal is agreed in September or October. Meanwhile, business and consumer confidence are likely to continue to suffer, causing decisions [...]
Bank of England to hold rates as weak economy spurs calls to boost business investment June 18, 2018 The Bank of England is expected to hold interest rates steady at its latest monetary policy meeting this week with debate raging among economists as to whether the UK economy is ready for another rate hike. The Bank’s monetary policy committee (MPC) meets this week before Thursday’s midday announcement, with doubts growing over whether interest [...]