Bank of England

  • 2019-07-29 04:30

    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 05:30

    -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 13:10

    -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 12:21

    -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.

  • 2019-07-02 10:05

    -Carney Says Monetary Policy Response To No Deal Brexit, Global Trade Shock Limited

    LONDON (MNI) - Bank of England Governor Mark Carney said today that there are limits to how extensive the monetary policy response to further trade shocks and a no deal Brexit could be, and that fiscal policy would have to play a key role.

    Carney, in a speech at a Local Government Association event, painted a picture of mounting global trade tensions and stalling growth but the Monetary Policy Committee's response to another shock would be restricted, as it cannot keep stretching the time period over which it would tolerate an inflation overshoot.

    The following are key points from Carney's speech:

    -Carney noted that in the May Inflation Report forecast round the M

  • 2019-07-01 13:15

    By David Robinson

    LONDON (MNI) - Senior Conservative lawmaker George Young, speaking on behalf of the government in a House of Lords debate today, said that it was not planning to end the issuance of inflation-linked gilts based on the retail price index (RPI).

    Lord Young of Cookham said that the government was working hard on a response, but he heralded the government's answer to one hot issue by ruling out ending RPI-linked gilt issuance.

    The government "has no plans to stop issuing index-linked gilts linked to RPI," Lord Young said.

    He noted that demand for RPI linkers was high from pension funds and insurers and said that the Debt Management Office had to seek value for money.

  • 2019-07-01 04:30

    By David Robinson and Irene Prihoda

    LONDON (MNI) - Bank of England money and credit data showed

    The following are key points from the BOE data sets:

    -Mortgage interest rates in May, in aggregate dipped lower with rates on new mortgages tending to hold steady or decline slightly.

    The data show that despite BOE Monetary Policy Committee members continuing to talk about limited and gradual tightening ahead, mortgagees are seeing a slight easing in interest rates paid.

    The average rate on the stock of mortgage fell to 2.42% in May from 2.45% in April, the lowest rate on record.

  • 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