Bank of England

  • 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.

  • 2019-03-06 13:30


    BOE Saunders Says UK Economy Has Slowed Significantly

    LONDON (MNI) - The UK economy has slowed significantly and the current sluggish growth rate is not likely to give rise to excess demand, BOE Monetary Policy Committee member Michael Saunders said in a speech Wednesday.

    The following are key points from his speech at Imperial College Business School:

    -Recent activity indicators have pointed to a marked deceleration in UK economic growth, with output, orders and confidence all falling.

  • 2019-03-06 08:44


    --Cunliffe: Brexit Aside Risks To Financial Cycle Not Obvious

    LONDON (MNI) - Setting aside the obvious dangers from a disorderly Brexit, it is not clear where the key risks to UK financial stability lie at present, Bank of England Deputy Governor Jon Cunliffe said Wednesday.

    Cunliffe warned the key issues may lie outside the core banking system, and arise from the rapid evolution of the financial system in recent years.

    The following are key points from the speech at the London School of Economics:

    --BOE research has found that a rapid build up in credit is a fairly reliable indicator of a subsequent downturn but Cunliffe said that the pace of recent credit growth appears sustainable.

  • 2019-03-05 05:30


    By Jai Lakhani, Irene Prihoda and David Robinson

    LONDON (MNI) - The following are the key points from the March Financial Policy Committee (FPC) statement and minutes released Tuesday by the Bank of England:

    -As part of its Brexit preparations, the FPC said that it was launching a new liquidity facility in Euros (LiFE), with the first auction next Wednesday. These auctions will occur on a weekly basis over the coming months.

    The facility requires the activation of the existing swap line with the European Central Bank and is designed as a backstop facility.

    -Whilst the FPC continued to argue that the core of the financial system is prepared for a disorderly no-deal Brexit, market stability would likely be impeded under such a scenario.

  • 2019-03-01 06:45


    By David Robinson and Jai Lakhani

    LONDON (MNI) - Bank of England money and credit data showed mortgage approvals and consumer lending rose and average interest rates on shorter-term fixed rate mortgages fell in January.

    The data add to the evidence that monetary conditions remain easy. The following are key points from the data sets:

    --The headline rise in mortgage approvals, to 66,766 from 64,468, exceeded analysts' expectations. Analysts tend to extrapolate from the data issued by major British banks ahead of the BOE figures.

  • 2019-02-26 07:22


    -BOE MPC Giving Evidence To TSC Cagey On Likely Response To No Deal

    LONDON (MNI) - Senior Bank of England officials said it was not possible to anticipate the policy response to a no-deal Brexit, despite a comment by one of their colleagues who said that easing, or a prolonged interest rate pause, would be the most likely outcome.

    Following are highlights after Bank of England Governor Mark Carney, Deputy Governor Dave Ramsden and external Monetary Policy Committee members Gertjan Vlieghe and Jonathan Haskel gave evidence to the Treasury Select Committee Tuesday:

    -- Both Haskel and Ramsden said they would want to see how things unfolded in the event of no deal rather than stating what the policy response was most likely to be in advance.

    In contra

  • 2019-02-25 07:38


    --Derivatives 'Agreement' Ensures Post-Brexit Continuity Of Arrangements

    LONDON (MNI) - The UK and U.S. have unveiled a framework designed to ensure continuity of derivatives trading after Brexit, explained Monday by Mark Carney, Governor of the Bank of England, Financial Conduct Authority head Andrew Bailey and Christopher Giancarlo, Chairman, U.S. Commodity Futures Trading Commission.

    The following are the key policy points from their trio's press conference:

    --The agreement was widely expected, with Giancarlo saying that "many assumed the U.S. and UK would work things out." Monday's events appeared to be an exercise in boosting market confidence with the March 29 deadline for a EU/UK withdrawal deal looming.