Bank Of England

Top UK lenders could be dismantled smoothly in crisis, says Bank of England

The BoE said that its assessment found some shortcomings or areas for further enhancement, but no serious issues were uncovered that were serious enough to hamper the resolution

London's FTSE 100 falls after US recession fears spark global sell-off

Friday's data showed a sharp slowdown in US job growth, raising fears of deterioration in American labour market and potential recession, prompting bets for a half-point interest rate cut in September

Bank of England cuts interest rates from 16-year high as inflation eases

Thursday's decision was in line with the forecast in a Reuters poll of economists but financial markets had only seen just over a 60 per cent chance of a cut

UK wage growth slows but remains high for Bank of England to curb inflation

The Office for National Statistics also said on Thursday it was delaying the switch to a new version of its Labour Force Survey which had been due to take place in September

Despite 20% lesser jobs on offer, starting pay in UK up 6.5% on year in May

The 6.5 per cent rise in advertised starting pay compared with a year earlier outstrips the 6.0 per cent rise in official wage data for the three months to April

BoE keeps key interest rate at 16-year high of 5.25% despite inflation fall

The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25 per cent, even though inflation has fallen to its target of 2 per cent. In a statement, some policymakers on the bank's nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon. The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the UK's general election in two weeks time. A cut would have been seized upon by Prime Minister Rishi Sunak as positive economic news.

BoE may keep interest rate at 16-yr high of 5.25% despite inflation fall

Any hopes the governing Conservative Party may have of the Bank of England cutting its main interest rate from a 16-year high of 5.25 per cent Thursday are expected to be dashed even though inflation in the UK has fallen to its target rate for the first time in nearly three years. Official figures on Wednesday showed that inflation, as measured by the consumer prices index, fell to 2 per cent in the year to May from 2.3 per cent the month before, with food prices providing the biggest downward contribution. That's the first time since July 2021 that inflation has been at the bank's target. Despite the welcome decline, some policymakers on the bank's Monetary Policy Committee appear to be still concerned over the scale of price increases in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates are cut too soon. That is why an interest rate cut tomorrow is still very unlikely, said Luke Bartholomew, deputy chief ..

Asian stocks hold on to gains; BoE in focus ahead of rate decision meeting

Apart from the BoE, investors will also watch out for central bank decisions from Switzerland and Norway on Thursday to set the tone for global rates outlook

King Charles III banknotes to enter circulation, may be rare for some time

The Bank of England said that new notes will only be printed to replace those depicting Queen Elizabeth II that are worn or to meet any rise in demand at a time when cash usage is in decline

UK inflation falls to 2.3%, lowest in 3 years but still above BoE's target

Inflation in the UK fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed on Wednesday. The Office for National Statistics said inflation, as measured by the consumer prices index, fell to 2.3 per cent in the year to April, down from 3.2 per cent in March. That is the lowest level since July 2021 when the global economy was still being held back by the coronavirus pandemic. The fall also takes inflation nearer to the Bank of England's target rate of 2 per cent and is likely to pile pressure on its nine-member rate-setting panel to cut interest rates from the current 16-year high of 5.25 per cent. The next rate meeting is on June 20 and many economists think the bank will cut borrowing costs. However, others think that ongoing concerns on the panel over the scale of price rises in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates a

With inflation falling fast, will Bank of England quickly cut rates?

Much of the drop in headline consumer price inflation - from a peak of 11.1 per cent a year and a half ago - is due to falling energy prices which are beyond the BoE's control

BoE moves closer to first rate cut since 2020, as second official backs cut

The BoE said on Thursday its Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%

BoE likely to move closer to first rate cut since 2020 as inflation falls

The big question for investors is whether the BoE suggests that a cut could come in June - when the European Central Bank has already signalled it will reduce borrowing costs

FTSE 100 hits record high, pound slips ahead of BoE interest rate verdict

The blue-chip FTSE 100 ended the session up 0.5%, notching a record high of 20,491.99 points

Bank of England's rate cut plan set to differ from Federal Reserve's

Ahead of Thursday's decision, Governor Andrew Bailey has distanced Britain from resurgent consumer price pressures in the US, pointing to strong evidence of UK inflation receding

UK consumer price inflation slows by less than expected to 3.2% in March

The Bank of England - which has an inflation target of 2% and economists polled by Reuters had forecast an annual rate of 3.1%

Ex-Fed chair finds 'shortcomings' in Bank of England's economic forecasting

A review of the Bank of England's economic forecasting that was published on Friday and undertaken by Ben Bernanke, the former chair of the US Federal Reserve, has found significant shortcomings that should be addressed to better inform future interest rate decisions. Following widespread criticism about the Bank of England's forecasts, Bernanke was tasked last year to review the forecasting models. Though noting that all central banks have had problems over the past few years as a result of a series of economic shocks, notably the coronavirus pandemic and the cost-of-living crisis heightened by Russia's invasion of Ukraine, Bernanke said the Bank of England's issues were made worse by out-of-date software that had not been properly maintained. The review said that insufficient resources have been devoted to ensuring that the software and models underlying the forecast are adequately maintained". Bernanke, who led the Fed between 2006 and 2014, a period that included the global ...

Bank of England keeps key interest rate unchanged at 16-yr high of 5.25%

The Bank of England kept its main interest rate unchanged at a 16-year high of 5.25 per cent on Thursday even though inflation continues to drop from multi-decade peaks. The decision was widely anticipated in financial markets and comes a day after the US Federal Reserve also left its key interest rate unchanged. But unlike the Fed, the Bank of England gave few explicit indications that it was getting ready for a series of interest rate reductions in the months to come. The Swiss National Bank went the other way on Thursday, with a surprise cut to its main interest rate by a quarter of a percentage point. Market expectations that lower UK interest rates were on the horizon got a boost Wednesday with news that inflation fell to a 2.5-year low of 3.4 per cent in February more than anticipated and is now not far off the Bank of England's target rate of 2 per cent. The bank's rate-setting Monetary Policy Committee acknowledged that inflation has been trending lower and could fall bel

Bank of England builds 'proactive case' to regulate non-banking sector

A central banker said that one way to overcome this would be to use capital and liquidity rules to influence how banks, which central banks regulate, interact with non-banks

UK economy puts recession behind it but price pressures rise: PMI survey

That is likely to be a relief for Prime Minister Rishi Sunak who has had to endure taunts of "Rishi's recession" from the opposition Labour Party which is riding high in opinion polls