Page 3 - Bank Of England

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crisis heightened by Russia's invasion of Ukraine, Bernanke said the Bank of England's issues were made worse by out-of-date software that had not been properly maintained.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

Rate cut bets not unreasonable but economy is picking up: BoE's Bailey

"The market is essentially embodying in the curve that we will reduce interest rates during the course of this year," Bailey told lawmakers on the Treasury Select Committee

Goldman Sachs pushes BoE interest rate-cut forecast to June from May

Despite data showing signs of cooling in inflation, the central bank remains cautious in its approach due to persistent wage increases and a tight labor market

Bank of England keeps rates unchanged at 5.25%, may cut if inflation falls

The pound erased earlier losses and investors trimmed bets on the extent of Bank Rate cuts but still saw four reductions in 2024, a view that Bailey said he did not want to challenge

UK economy grew more than expected in Nov but still risks recession

Britain's economy struggled to gain momentum in 2023, as households were squeezed by rapid inflation and the highest Bank of England (BoE) interest rates in 15 years

Dollar softens, sterling squeezes as focus turns to US inflation figures

The dollar dipped on Thursday while sterling crosses were nursing losses in holiday-thinned trade ahead of the last major data release of the year in Friday's US inflation figures

Big UK inflation drop bolsters bets on Bank of England cuts early next year

The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in October, pushed down in part by cheaper petrol, for its lowest reading since September 2021

UK inflation falls by more than anticipated to 2-year low of 3.9% in Nov

Inflation in the UK as measured by the consumer prices index eased back to its lowest level in more than two years, official figures showed Wednesday, in a development that is likely to bolster speculation that the Bank of England may start cutting interest rates sooner than expected. The Office for National Statistics said inflation dropped to 3.9 per cent in the year to November, its lowest level since September 2021, from 4.6 per cent the previous month. That decline was bigger than anticipated in financial markets. The agency said the biggest driver for the fall was a decrease in fuel prices after an increase at the same time last year. Food price inflation also contributed to the decline. Last week, the Bank of England left its main interest rate at a 15-year high of 5.25 per cent, where it has stood since August following the end of nearly two years of hikes. Bank Gov. Andrew Bailey said interest rate policy would likely have to remain restrictive for an extended period of ...

Bank of England holds rates with warning of 'way to go' on inflation

The UK central bank's decision contrasted with the US Fed's admission last night that reductions were on the agenda, reiterating that BOE policy will be "sufficiently restrictive" for long

BoE set to hold interest rates at 15-year high amid economic concerns

The Bank of England is set to join its peers in the U.S. and Europe in keeping borrowing rates unchanged at its policy meeting Thursday despite mounting worries over the state of the British economy. The central bank is expected to keep its main interest rate at a 15-year high of 5.25 per cent, where it has stood since August. Holding that high rate follows two years of hikes that targeted a surge in inflation, first stoked by supply chain issues during the coronavirus pandemic and then Russia's invasion of Ukraine, which pushed up food and energy costs. Its decision comes during a busy pre-Christmas bout of central bank activity, with the U.S. Federal Reserve and the European Central Bank also set to keep their main borrowing rates on hold at multi-year highs. The Bank of England is widely thought to be further away from cutting rates than the Fed or the ECB, with inflation in the UK higher than in the US or across the 20 European Union countries that use the Euro currency. The Ba

ESMA in 'active' talks with RBI to resolve Clearing Corporation impasse

After the global financial crisis of 2008, the European Union in 2012 had adopted new market infrastructure regulations in order to strengthen and safeguard systems

RBI, Bank of England strengthen ties; ink agreement to end CCIL logjam

Move comes as a relief to UK-based banks such as Standard Chartered and HSBC

RBI, Bank of England sign agreement to exchange information on CCIL

The MoU also demonstrates the importance of cross-border cooperation to facilitate international clearing activities and the BoE's commitment to deference to other regulators' regimes

BoE keeps main UK interest rate unchanged at 15-year high of 5.25%

The Bank of England has kept its main interest rate unchanged at the 15-year high of 5.25 per cent, as inflation across the UK is expected to fall further over the coming months. In a statement on Thursday, the bank's nine-member Monetary Policy Committee indicated that inflation, as measured by the consumer price index, is set to fall toward a 2 per cent target rate over the coming year. In the year to September, inflation stood at 6.7 per cent. Most economists expect a sizable decline over coming months as domestic energy bills fall. The bank in September ended a nearly two-year run of interest rate rises.