How the Bank of England is scrambling to stabilise markets
2 years, 2 months ago

How the Bank of England is scrambling to stabilise markets

The Telegraph  

The scale has not yet been decided. It is not the Bank’s job simply to intervene when investors ditch bonds and so the Government’s cost of borrowing rises. The initial plan is to buy bonds over two weeks, but the Old Lady also said “the purchases will be carried out on whatever scale is necessary to effect this outcome” while “the purchases will be unwound in a smooth and orderly fashion once risks to market functioning are judged to have subsided”. The Bank of England has “operational independence”, meaning the Government sets its goals — get inflation to 2pc, maintain financial stability — but the Bank can choose how to get there. Buying more bonds, even on a “strictly time limited” basis to “tackle a specific problem in the long-dated government bond market” raises the risk of giving the appearance the Bank has to buy bonds when the Government wants to borrow more.

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Bank of England HOLDS interest rates despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation
Trending News
5 days ago

Bank of England HOLDS interest rates despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation

Daily Mail  

The Bank of England kept interest rates on hold today despite mounting alarm at the stalling economy. Interest rates, which influence how much banks charge for loans and mortgages, are used as a tool by the central bank to keep inflation at its 2 per cent target level. Most economists had thought the latest data, and the prospect of price …

Bank of England set to keep interest rates on hold TODAY despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation
Top News
5 days, 4 hours ago

Bank of England set to keep interest rates on hold TODAY despite UK economy stalling after Labour's Budget raid - with fears over resurgent inflation

Daily Mail  

The Bank of England is set to keep interest rates on hold today despite mounting alarm at the stalling economy. Interest rates, which influence how much banks charge for loans and mortgages, are used as a tool by the central bank to keep inflation at its 2 per cent target level. Rob Wood, chief UK economist for Pantheon Macroeconomics, said: …

Bank of England expected to hold interest rates after jump in inflation
1 week, 3 days ago

Bank of England expected to hold interest rates after jump in inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England is …

Bank of England could be ‘more aggressive’ with interest rate cuts, says governor
2 months, 2 weeks ago

Bank of England could be ‘more aggressive’ with interest rate cuts, says governor

The Independent  

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Bank of England widely expected to hold interest rates despite big US Fed cut
3 months ago

Bank of England widely expected to hold interest rates despite big US Fed cut

The Independent  

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Bonds to be sold to savers amid fears of lack of demand for British debt
10 months ago

Bonds to be sold to savers amid fears of lack of demand for British debt

The Telegraph  

Ordinary savers will be able to buy Government bonds directly from the Treasury in a move that will put individual investors on a par with big City institutions for the first time. The Debt Management Office will allow retail investors to take part in auctions of gilts, as UK government bonds are known, rather than having to wait to buy …

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet
10 months, 3 weeks ago

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet

Associated Press  

LONDON — Just like the U.S. Federal Reserve, the Bank of England is edging toward cutting interest rates — though not quite yet. “We need to see more evidence that inflation is set to fall all the way to the 2% target, and stay there, before we can lower interest rates,” he said. Bailey also said the bank was keeping …

Bank of England holds interest rates at a 15-year high despite worries about the economy
1 year ago

Bank of England holds interest rates at a 15-year high despite worries about the economy

Associated Press  

LONDON — The Bank of England kept borrowing rates unchanged Thursday despite mounting worries over the state of the British economy, and it showed little sign that it is contemplating cutting them anytime soon — unlike the U.S. Federal Reserve. The central bank left its main interest rate at a 15-year high of 5.25%, where it has stood since August …

Bank of England’s net zero focus ‘jeopardises’ inflation fight
1 year ago

Bank of England’s net zero focus ‘jeopardises’ inflation fight

The Telegraph  

The Bank of England’s focus on net zero “jeopardises” its ability to fight inflation, an influential Lords committee has warned. The report said this “risks drawing it into the Government’s wider policy agenda; and increases the potential for conflict between the Bank’s objectives.” The Lords noted that even Governor Andrew Bailey had conceded the Bank’s mounting responsibilities had “made policymaking …

Bank of England to stress test for major bond market crash
1 year, 1 month ago

Bank of England to stress test for major bond market crash

The Telegraph  

Over the past two years, the Bank of England has raised its base rate from 0.1pc to 5.25pc, with the US Federal Reserve and the European Central Bank making similar moves. Jamie Dimon, chairman and chief executive of JP Morgan, recently told the Sunday Times: “Geopolitical matters are very serious - arguably the most serious since 1938.” Christian Sewing, chief …

ALEX BRUMMER: Take the Bank of England's gloomy forecast for 2024 with a pinch of salt
1 year, 1 month ago

ALEX BRUMMER: Take the Bank of England's gloomy forecast for 2024 with a pinch of salt

Daily Mail  

This decision was expected. According to the Bank's forecasts, the consumer price index will fall from its rate of 6.7 per cent to 4.25 per cent in the final months of the year. One of Rishi Sunak's five pledges – to halve inflation by the end of the year and ease the cost of living crisis – should now be …

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices
1 year, 1 month ago

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices

Associated Press  

LONDON — The Bank of England kept its main interest rate unchanged on Thursday at the 15-year high of 5.25% and indicated that borrowing costs will likely remain at these sort of elevated levels for a while, especially if oil and gas prices increase sharply because of the Israel-Hamas war. In a statement, the bank’s nine-member Monetary Policy Committee indicated …

Bank of England hints that UK borrowing rates will stay high after its new hike
1 year, 4 months ago

Bank of England hints that UK borrowing rates will stay high after its new hike

Associated Press  

LONDON — The Bank of England raised its main interest rate Thursday to a fresh 15-year high and indicated it would stay high for some time to bring down persistently high inflation — another potential blow for those seeing their rents and mortgages rise during a cost-of-living crisis. The bank said some of the risks from more stubborn inflation, notably …

Bank may need to spark recession to control inflation, economist says
1 year, 6 months ago

Bank may need to spark recession to control inflation, economist says

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Policymakers won’t want to steer market rate expectations lower, …

Bank of England ‘more optimistic’ UK can avoid recession as rates hiked again
1 year, 9 months ago

Bank of England ‘more optimistic’ UK can avoid recession as rates hiked again

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England’s boss …

Stock markets rebound as Chancellor ‘stands ready’ after banking turmoil
1 year, 9 months ago

Stock markets rebound as Chancellor ‘stands ready’ after banking turmoil

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Similar actions could be warranted if smaller institutions suffer …

Banking sector turmoil puts pressure on Bank of England over interest rates
1 year, 9 months ago

Banking sector turmoil puts pressure on Bank of England over interest rates

The Independent  

The Bank of England will be under close scrutiny on Thursday when it decides whether or not to push interest rates even higher, after the stability of the global banking sector has been thrown into question. “Until the end of last week, March’s Monetary Policy Committee meeting had appeared almost certain to deliver a 0.25 percentage point rate hike, with …

Bank of England rate hike says ‘too soon to declare victory’
1 year, 10 months ago

Bank of England rate hike says ‘too soon to declare victory’

Associated Press  

LONDON — The Bank of England announced another “forceful” increase in interest rates Thursday, saying it was too soon to declare victory against inflation that has slowed slightly but is still fueling a cost-of-living crisis, public-sector strikes and fears of recession. The British central bank has approved four straight increases of a half-point or more since Russia’s invasion of Ukraine …

Bank of England poised for big interest rate hike to tame inflation
1 year, 10 months ago

Bank of England poised for big interest rate hike to tame inflation

Firstpost  

London: The Bank of England is expected to raise interest rates by as much as half a percentage point on Thursday as it seeks to tame the double-digit inflation fuelling a cost-of-living crisis, public-sector strikes and fears of recession. Economists suggest this may be the last big rate increase for Britain’s central bank, which has approved 10 consecutive hikes since …

Government bonds and pound rally amid pressure for mini-budget U-turn
2 years, 2 months ago

Government bonds and pound rally amid pressure for mini-budget U-turn

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK government bonds and the …

Bank of England expands push to stabilize financial markets
2 years, 2 months ago

Bank of England expands push to stabilize financial markets

Associated Press  

LONDON — The Bank of England on Tuesday expanded its emergency effort to quash upheaval on financial markets unleashed by the government’s plan to slash taxes, saying fluctuations in bond prices posed a “material risk” to Britain’s fiscal stability. The U.K. central bank said it will now buy inflation-linked securities — which offer protection from inflation — as well as …

Bank of England warns of ‘material risk’ to UK financial stability
2 years, 2 months ago

Bank of England warns of ‘material risk’ to UK financial stability

Live Mint  

The Bank of England on Tuesday unveiled yet more measures aimed at calming markets rocked by a UK budget as it warned over risks to the nation's financial stability. A day after it launched a temporary facility aimed at easing liquidity pressures, the central bank Tuesday said it was widening the scope of daily purchases of UK government bonds, or …

Bank of England warns risk of UK financial crisis hasn’t gone away
2 years, 2 months ago

Bank of England warns risk of UK financial crisis hasn’t gone away

CNN  

London CNN Business — For the second time in two days, the Bank of England has been forced to offer extra support to UK markets still reeling from the government’s announcement last month that it would slash taxes and increase borrowing. The central bank warned Tuesday that there was still a “material risk to UK financial stability” from a sharp-sell …

Bank of England signals it won't keep borrowing costs down as it rejects £1.9bn of gilts sales
2 years, 2 months ago

Bank of England signals it won't keep borrowing costs down as it rejects £1.9bn of gilts sales

The Telegraph  

It came as a top Bank official urged policymakers to increase interest rates aggressively to curb inflation. Ms Mann, who voted to increase interest rates by 0.75 percentage points last month, said history suggested price rises were more likely to be “stabilised using the front-loaded strategy”, even if policymakers had to reverse course later. Julian Jessop, an independent economist and …

UK central bank intervenes in market to halt economic crisis
2 years, 2 months ago

UK central bank intervenes in market to halt economic crisis

Associated Press  

LONDON — The Bank of England took emergency action Wednesday to stabilize U.K. financial markets and head off a crisis in the broader economy after the government spooked investors with a program of unfunded tax cuts, sending the pound tumbling and the cost of government debt soaring. The Bank of England said it would buy long-term government bonds over the …

Bank of England to buy U.K. government bonds to stabilise financial markets
2 years, 2 months ago

Bank of England to buy U.K. government bonds to stabilise financial markets

The Hindu  

The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and October 14 to stabilise financial markets, after a slump in British gilt prices since a government fiscal statement on Friday. Citing potential risks to U.K. financial stability, the BoE also said it would delay the start of a programme …

Bank of England forced to intervene in markets over ‘material risk’ to UK economy
2 years, 2 months ago

Bank of England forced to intervene in markets over ‘material risk’ to UK economy

The Telegraph  

The Bank of England has been forced to step into bond markets amid market turmoil that has sent government borrowing costs soaring and posed a risk to financial stability. It said: “Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability." “The Bank is monitoring developments in financial markets very closely …

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash
2 years, 2 months ago

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash

CNN  

London CNN Business — The Bank of England said Wednesday it would buy UK government debt “on whatever scale is necessary” in an emergency intervention to halt a bond market crash that it warned could threaten financial stability. “This repricing has become more significant in the past day — and it is particularly affecting long-dated UK government debt,” the central …

Bank of England forced to intervene as pound crashes to all-time low after mini-Budget
2 years, 2 months ago

Bank of England forced to intervene as pound crashes to all-time low after mini-Budget

The Independent  

The Bank of England was forced into an emergency intervention on Monday, warning that it would not hesitate to hike interest rates “as much as needed” after the pound plummeted in the wake of Kwasi Kwarteng’s mini-Budget. One “red wall” Conservative told The Independent that Friday’s package was “strange and stupid”, while a second lashed out at “Tea Party Republicans …

Bank of England signals ‘significant’ response to pound turmoil
2 years, 2 months ago

Bank of England signals ‘significant’ response to pound turmoil

The Telegraph  

The Bank of England’s chief economist warned it is crucial the Bank of England’s independence is respected as he signalled to volatile markets that significant interest rate rises are on the way in November. Huw Pill was speaking as long-term borrowing costs hit their highest level since 2002 on the third consecutive day of market turmoil following the Chancellor’s heavy …

Bank of England fails to reassure markets after pound plunge
2 years, 2 months ago

Bank of England fails to reassure markets after pound plunge

Associated Press  

LONDON — The Bank of England sought to reassure financial markets after the British pound touched an all-time low against the U.S. dollar Monday, but its entreaty fell flat for investors concerned about a sweeping package of tax cuts that further jolted a faltering economy that the government’s plan was meant to prop up. Its statement came after the pound …

The pound’s crash will make inflation worse and push interest rates higher
2 years, 2 months ago

The pound’s crash will make inflation worse and push interest rates higher

CNN  

London CNN Business — The UK government’s decision to implement the biggest tax cuts in 50 years while borrowing tens of billions of dollars to subsidize soaring energy costs this winter is a massive gamble that’s sent shockwaves through financial markets. The Bank of England said in an emergency statement that it was “monitoring developments in financial markets very closely,” …

Bank of England urged to call emergency rates meeting next week to rescue pound
2 years, 3 months ago

Bank of England urged to call emergency rates meeting next week to rescue pound

The Telegraph  

The Bank of England has been urged to raise interest rates as soon as next week to help the pound from further weakening. Meanwhile, UK bond yields were on the rise, with the 10-year gilt yields seeing their biggest one-day surge on record in Bloomberg data. Deutsche Bank analysts said there are "very strong signals" that the market is no …

Liz Truss sails into uncharted waters – without Bank of England support
2 years, 3 months ago

Liz Truss sails into uncharted waters – without Bank of England support

The Telegraph  

But as well as the Bank going from big buyer to big seller, there are signs foreign investors are less keen than they once were to hold sterling assets. Shreyas Gopal at Deutsche Bank says “significantly” higher yields on gilts may be needed to tempt international investors to fund large-scale borrowing. Ensuring markets can digest the volume of bonds depends …

The Bank of England predicts a lengthy recession at the end of the year
2 years, 4 months ago

The Bank of England predicts a lengthy recession at the end of the year

NPR  

The Bank of England predicts a lengthy recession at the end of the year Enlarge this image toggle caption Frank Augstein/AP Frank Augstein/AP LONDON — The Bank of England announced its biggest interest rate increase in 27 years on Thursday as it forecast that the war in Ukraine would fuel further inflation and tip the U.K. economy into a prolonged …

Bank of England predicts recession at the end of the year
2 years, 4 months ago

Bank of England predicts recession at the end of the year

Associated Press  

LONDON — The Bank of England announced its biggest interest rate increase in 27 years on Thursday as it forecast that the war in Ukraine would fuel further inflation and tip the U.K. economy into a prolonged recession. Those pressures persuaded the bank’s Monetary Policy Committee to boost its key interest rate by 0.5 percentage points, the biggest of six …

Bank of England raises rates by most since 1995 even as long recession looms
2 years, 4 months ago

Bank of England raises rates by most since 1995 even as long recession looms

The Hindu  

The Bank of England raised interest rates by the most in 27 years on August 4, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%. Reeling from a surge in energy prices caused by Russia's invasion of Ukraine, the BoE's Monetary Policy Committee …

Bank of England: Crypto crashes show need for tougher rules
2 years, 5 months ago

Bank of England: Crypto crashes show need for tougher rules

Associated Press  

LONDON — The Bank of England warned Tuesday that recent cryptocurrency meltdowns that wiped out more then $2 trillion in value highlight the need for tougher financial regulations The U.K.'s central bank said that the crashes exposed vulnerabilities in the crypto markets reminiscent of previous bouts of financial turmoil. Extreme volatility in the crypto markets, including so-called stablecoins, resulted in …

Bank of England hikes interest rates but resists bolder move
2 years, 6 months ago

Bank of England hikes interest rates but resists bolder move

Associated Press  

LONDON — The Bank of England raised interest rates by a quarter-percentage point Thursday, shrugging off pressure for a bolder move to combat price increases that have pushed inflation to a 40-year high. “The committee will be particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response.” The decision came as the bank …

Bank of England fights to save its reputation - and the economy
2 years, 7 months ago

Bank of England fights to save its reputation - and the economy

The Telegraph  

Tories target Bank Why the sudden hostility from the Tories? Anger at the cost of living crisis is intense – YouGov surveys indicate voters are almost twice as likely to back Sir Keir Starmer’s Labour than the Tories when it comes to managing the issue – but the Government’s record on helping ease the crisis is mixed, to put it …

Bank of England should not be made to go green, warns Mervyn King
3 years, 9 months ago

Bank of England should not be made to go green, warns Mervyn King

The Telegraph  

Rishi Sunak’s move to give the Bank of England eco-friendly responsibilities risks undermining the institution’s independence, Lord King has warned. The Bank could have to buy bonds of green companies while shunning fossil fuel firms, due to a new requirement from the Chancellor for it to consider the environment in its policy decisions. "Fiddling with the Bank of England's remit …

No-deal Brexit would hit pound sterling, warns Bank of England
4 years ago

No-deal Brexit would hit pound sterling, warns Bank of England

The Independent  

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK Sign up to our Brexit email for the latest insight Sign up to our Brexit email for the latest insight SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy …

Bank of England poised to take bond-buying plan above $1 trillion
4 years, 1 month ago

Bank of England poised to take bond-buying plan above $1 trillion

Live Mint  

The Bank of England is set to pump up its huge bond-buying stimulus plan to more than $1 trillion on Thursday as Britain's economy takes a fresh hit from new coronavirus lockdowns and another possible blow from a no-deal Brexit. On the day England goes into a month-long "stay-at-home order", alongside restrictions elsewhere in the United Kingdom, the BoE looks …

Bank of England fires £150bn bullet at Covid-19 second wave
4 years, 1 month ago

Bank of England fires £150bn bullet at Covid-19 second wave

The Telegraph  

The Bank of England is to pump another £150bn into Britain's ailing economy as part of crisis efforts to prevent a winter meltdown after slashing its growth forecasts for the next two years. Its latest £150bn stimulus package takes total bonds purchased by the Bank under quantitative easing to £895bn. Governor Andrew Bailey vowed to do more if needed, in …

Bank of England predicts slower recovery for UK economy
4 years, 4 months ago

Bank of England predicts slower recovery for UK economy

CNN  

London CNN Business — The UK economy will take longer than expected to recover from the coronavirus pandemic, the Bank of England said Thursday,as it warned of rising unemployment and other risks to its forecast, such as a second wave of infections and Brexit. “We have an unusually large downside skew on the forecast, which reflects the risks as we …

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