Bank of England

  • 2019-06-11 06:01


    By David Robinson

    LONDON (MNI) - Bank of England Monetary Policy Committee member Michael Saunders said Brexit was to blame for the disconnect between his message that more tightening was likely to be needed and market rate expectations of no rate hikes through 2020.

    "The disconnect is more to do with Brexit assumptions" than MPC communication, Saunders said in evidence to the Treasury Select Committee.

    --Saunders noted that the MPC's fan-charts, its probabilistic growth and inflation projections, under-estimated the uncertainty of the outlook by excluding the no-deal and remain options.

    "If either were to become the central case, the economic outlook could change materially," Saunders said in his written evidence.

    --Saunders said a no deal Brexit would likel

  • 2019-05-20 12:53


    By David Robinson

    LONDON (MNI) - Bank of England Deputy Governor Ben Broadbent said that the negative impact of the Brexit process on business investment would be worse if business executives continued to take the view that the end was in sight.

    In a speech at Imperial College Business School Broadbent said that the evidence showed businesses which were expecting uncertainty to evaporate in the near future held off investing more than if uncertainty was expected to persist.

    Persistent speculation that there could be a resolution of Brexit soon only amplifies the hit to business investment.

    The following are key points from the speech:

    -The Brexit deadline for a deal to be agreed between the UK and the EU, allowing a transition period, was originally set for

  • 2019-05-20 11:12


    -BOE Carney And Colleagues Hearing Tues Cancelled; Problem Not With BOE

    LONDON (MNI) - Tuesday's scheduled hearing with Bank of England Governor Mark Carney and colleagues at the Treasury Select (TSC) Committee has been cancelled.

    A TSC official confirmed the cancellation but did not offer a reason, although Market News understands that the cancellation was triggered by the TSC and not by the Bank.

    Mark Carney, Deputy Governor Ben Broadbent, and external MPC members Silvana Tenreyro and Michael Saunders were scheduled to give evidence on the May Inflation Report at 0930 GMT.

    All TSC meetings scheduled for Tuesday have been cancelled and no alternative date for the MPC hearing has yet been proposed.

    --MNI London Bureau; tel: +44 203-586-2223; ema

  • 2019-05-16 13:30


    By David Robinson

    LONDON (MNI) - Bank of England Monetary Policy Committee member Jonathan Haskel said in a speech in York that the growth of intangible assets could impact both policy transmission and financial stability.

    The following are key points from the speech, which did not address current monetary policy setting:

    --Haskel focussed on his signature research topic: the rapid growth in firms' intangible assets such as software, reputation and knowledge relative to tangible capital, such as hardware and buildings.

    Haskel had previously said that Brexit uncertainty could be a key factor behind recent weakness in UK investment but here he floated the idea that it may also reflect under-recorded investment in intangibles.

    "Intangibles appear to be part of t

  • 2019-05-01 04:30


    By David Robinson and Irene Prihoda

    LONDON (MNI) - Bank of England money and credit data showed a decline in mortgage approvals while the average interest rates paid by borrowers remained at all time lows and unsecured credit growth atrophied.

    The data highlight how the rise in Bank Rate, from 0.25% to 0.75%, has not fed through to higher interest payments for many borrowers.

  • 2019-04-24 05:57


    By David Robinson

    LONDON (MNI) - UK Chancellor of the Exchequer Philip Hammond said Wednesday that he would prefer that the next Bank of England Governor serves a full eight year term but that he was prepared to consider a shorter appointment for an exceptional candidate.

    Current Governor Mark Carney's eight year term runs until 30 June 2021 but he has chosen not to serve the full term and he is set to leave on 31 January 2020. Hammond announced earlier in the day that the open recruitment to appoint Carney's replacement was now underway.

    The following are key points from Hammond's evidence session to the Treasury Select Committee:

    -Hammond made it clear that Carney's successor would be an established figure.

  • 2019-04-03 12:12


    By David Robinson

    LONDON (MNI) - Bank of England Governor Mark Carney said the risk of a no deal Brexit was "alarmingly high", speaking in an interview with Sky TV.

    No deal was the biggest risk to financial stability from the Brexit process, Carney said, adding that real progress had been made preparing for this eventuality.

    Referring to the risk of no deal, he said: "It's alarmingly high now."

    Last August he had described the risk as uncomfortably high.

    His comments came as opposition Labour leader Jeremy Corbyn was set to meet with Prime Minister Theresa May to try and find a way out of the Brexit impasse.

    --MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

    [TOPICS: M$B$$$,M$E$$$,M$$BE$]

  • 2019-03-29 05:40


    By David Robinson and Irene Prihoda

    LONDON (MNI) - Bank of England money and credit data showed that the average interest rates being paid by borrowers on a range of mortgages were at record lows in February, but housing market activity looks set to soften.

    The following are key points from the BOE data sets:

    -The number of mortgage approvals, a reliable indicator of future house purchases, fell to 64,337 in February from 66,696 in January, just above the 64,112 recorded in December.

    The approvals figure was a shade below the previous six month average of 65,50. Other housing market surveys have also painted a picture of subdued demand.

    -The average interest rate on the stock fixed 3,4 and 5 year mortgages hit their series lows in February.

  • 2019-03-13 09:35


    -Hammond: Brexit Uncertainty Damaging UK Economy; Can't Go On

    LONDON (MNI) - UK growth forecasts for the current year were cut to 1.2% by the Office for Budget Responsibility from the 1.6% forecast in October, Chancellor of the Exchequer Philip Hammond told Parliament Wednesday.

    Unveiling his Spring Statement, comprising an updated set of forecasts from the OBR, Hammond said that uncertainty was still hanging over the UK and "We cannot allow that to continue: It is damaging our economy."

    The OBR, like the BOE, bases its forecasts on the assumption that there will be a smooth Brexit. On this basis, the OBR's growth forecasts were little changed from October while it predicted a slight improvement in the public finances.

  • 2019-03-07 05:27


    --Tenreyro, Like Vlieghe, Sees Easing Likelier Response To Disorderly Brexit

    LONDON (MNI) - In the event of a no-deal Brexit, an easing of monetary policy was more likely than tightening, Bank of England Monetary Policy Committee member Silvana Tenreyro said Thursday.

    Her comments align with those of her college, Gertjan Vlieghe. Other MPC members have refused to attach any weights to the likely policy response to no Brexit.

    The following are the key comments from Tenreyro's speech in Glasgow:

    --Tenreyro said that the policy response to a no deal, no transition period would depend on the balance of the impact on supply, demand and the exchange rate.