Bank of England

  • 2020-01-15 03:40

    By David Robinson

    LONDON (MNI) - Bank of England Monetary Policy Committee member Michael Saunders said that the UK risks falling into a low inflation trap and advocated monetary easing.

    Saunders said the UK has been suffering from a prolonged period of sluggish growth, that activity has slowed further and that the next leg of downturn may be underway.

  • 2019-12-20 06:39

    -Bailey Takes Office March; Will Be In Place For That Month's MPC Meet -Bailey Has No Track Record On Monetary Policy -Career To Date In Financial Stability/Regulation

    LONDON (MNI) - Andrew Bailey has been appointed as the next Governor of the Bank of England, Chancellor of the Exchequer Sajid Javid confirmed Friday.

    Bailey has built his reputation on the financial stability and regulatory wings of the Bank and has no monetary policy track record, having never sat on the Monetary Policy Committee. He will take over on March 16, ahead of that month's meeting.

  • 2019-12-20 06:00

    -Sets Out Enduring Arguments For Backing Rate Cut -Sees Further Downside Risks Linger Over UK Economy -Case For Insuring Against Lower Rate Bound By Easing Now

    LONDON (MNI) - There are still significant downside risks facing the UK economy, Bank of England Monetary Policy Committee member Jonathan Haskel said Friday.

    Haskel, who voted in the minority for a 25 basis point rate cut at the December meeting, set out his views on the UK economic outlook in a speech at the Resolution Foundation Friday.

    His arguments for easing, including taking out insurance by stimulating the economy now to try and avoid getting stuck at the effective lower bound, and his concerns over the lingering downside risks, Brexit uncertainty amongst them, strongly suggest he will co

  • 2019-10-29 04:31

    -Mortgage Approvals Nudge Up In Sep To 65,919 Versus 65,681 Aug

    By David Robinson

    LONDON (MNI) - Average interest rates on new mortgages hit new lows in September with housing market activity flatlining, Bank of England data showed.

    The following are key points from the BOE Money and Credit data sets:

    -The average effective rate on new mortgage was just 2.00% in September, down from 2.04% in August, the lowest reading since November 2017. The average rate on the stock of mortgages was 2.39%, down from 2.42% in August, the lowest since January 2016.

    Market pricing suggests that Bank Rate will remain very low for long.

  • 2019-10-15 07:30

    --BOE Vlieghe: Economic Slack Likely Rising
    --BOE Vliege: More Stimulus Likely If Brexit Uncertainty Persists

    LONDON (MNI) - Bank of England Monetary Policy Committee member Gertjan Vlieghe said that the UK's underlying growth rate appeared to be close to zero and that if Brexit uncertainty persists more stimulus would likely be needed.

    Vlieghe, speaking at a Money and Macro Forum event, also said that more stimulus would likely be needed if there was a no-deal Brexit. A Brexit deal that was able to provide sufficient clarity for business to invest may, however, be enough to ward off further easing.

    Following are key points from the speech:

    --"A range of ...

  • 2019-09-30 03:30

    By David Robinson

    LONDON (MNI) - Mortgage approvals, a reliable indicator of future housing market activity, declined in August while the average interest rates on new loans edged higher, Bank of England data showed.

    The data were indicative of a housing market that is drifting sideways rather than showing, as yet, any clear downtrend.

    The following are key points from the BOE Money and Credit data sets:

    -The average interest rates paid by borrowers on new mortgages rose to 2.04% from 2.03% in July and June's 2.02%, which was the lowest level since January 2018.

  • 2019-07-29 03:30

    By David Robinson and Irene Prihoda

    LONDON (MNI) - Bank of England money and credit data showed that in June the average interest rates being paid by borrowers on new mortgages fell to their lowest level since January 2018 while mortgage approvals, a reliable indicator of future housing purchases, nudged higher.

    The growing gloom over the economic outlook, exacerbated by the risk of a no deal Brexit, has seen market rate expectations pushed lower with near term tightening no longer priced-in and new mortgage interest rates have moved down, improving affordability.

    The following are key points from the BOE data sets:

    -The average interest rate on new secured lending fell to 2.02% in June from 2.08% in April and May, hitting its lowest level since the fi

  • 2019-07-11 04:30

    -BOE FPC: 2018 Stress Test Covers Worst Brexit Outcomes -FPC Leaves Countercyclical Buffer Unchanged At 1%

    By Irene Prihoda and Les Commons

    LONDON (MNI) - The Bank of England Financial Policy Committee still sees the UK financial system as resilient to, and prepared for, the wide range of future risks it could face, including a worst-case disorderly Brexit, according to the July Financial Stability report, published Thursday.

    Following are the main points from the Bank's FSR:

    --Although the perceived likelihood on a 'no-deal' Brexit has increased

    since the start of the year, but preparations made by UK financial institutions see them in a good position to navigate any issues.

    --The FPC still sees its 2018 bank stress test of major UK banks as

    sufficiently severe to co

  • 2019-07-10 12:10

    -Tenreyro: Unlikely To Back Rate Hike In Next Few Months If Brexit Deal Done

    LONDON (MNI) - Bank of England Monetary Policy Committee member Silvana Tenreyro said that in her view policy was most likely to be eased in the event of a disruptive Brexit but that this was not certain.

    Even if there were to be a Brexit deal then the external MPC member said she would probably not back tightening policy.

    In a speech at Birkbeck, University of London, Tenreyro said that Brexit uncertainty had increased and that markets were now factoring in a rate cut.

  • 2019-07-05 11:21

    -Carney Says Market Views For Prolonged Hike Period "Entirely Understandable"

    LONDON (MNI) - Bank of England Governor Mark Carney once again refused to criticize market rate assumptions which point to no hike through 2020, even though the BOE Monetary Policy Committee's guidance has pointed to limited and gradual tightening.

    Earlier this week money market pricing based on SONIA, the sterling overnight rate, put around a 50% chance on a cut within a year.