Page 2 - Bank Of England

Lloyds confidence grows, rising house prices as Q3 profit beats forecasts

Britain's growth prospects and public finances meanwhile remain frail

UK pay grows slowest in two years as BoE considers when to cut rates again

BoE cut borrowing costs in August but kept them on hold at its September meeting, saying it wanted to see further signs that inflation pressures were abating

UK property market strengthens, pressure on renters intensifies: RICS

Tarrant Parsons, RICS' head of market analytics, said the reduction in borrowing costs in August had helped to recover buyer demand

Fed drives global push to cut rates despite uncertainties over 2025

Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold

Bank of England keeps main rate on hold at 5% in wake of US Fed cut

The Bank of England has kept its main interest rate unchanged at 5% despite a big cut from the US Federal Reserve, its first since the onset of the coronavirus pandemic more than four years ago. The decision Thursday was widely expected amid ongoing concerns about inflation within the bank's monetary policy committee, particularly the elevated levels in the crucial services sector, which accounts for around 80% of the British economy. Figures on Wednesday showed that inflation overall in the UK held steady at an annual rate of 2.2% in August, still above the bank's goal. The bank, which last month cut interest rates for the first time since the pandemic, is widely expected to reduce borrowing costs again at its next meeting in November, especially as it will have details of the government's budget on Oct 30. On Wednesday, the Fed cut its main interest by half of a percentage point to roughly 4.8% from a two-decade high of 5.3%, where it had stood for 14 months. It also signalled th

UK inflation steady at 2.2% ahead of Bank of England's next rate decision

Inflation in the UK held steady at an annual rate of 2.2 per cent in August, with higher air fares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday. The latest reading from the Office of National Statistics means inflation remains just above the Bank of England's target of 2 per cent. Last month, the central bank reduced its main interest rate by a quarter-point to 5 per cent, the first cut since the onset of the pandemic. Central banks around the world dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up during the pandemic and then because of Russia's full-scale invasion of Ukraine which pushed up energy costs. Most economists think the bank will opt to keep borrowing costs unchanged after its latest policy meeting on Thursday. However, they think that the bank will most likely cut again in November, in the wake of the ...

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