Analysts: Inflation in focus as BoE delivers monetary policy verdict March 18, 2021 The Bank of England is expected to focus on inflation when it publishes its latest monetary policy decisions at noon, according to analysts. Barret Kupelian, senior economist at PwC, said that vaccine rollouts, GDP data and positive Budget measures will “tilt the balance of risks to the UK economy towards the upside”. “As a result, [...]
BoE’s Bailey apologises to investors amid criticism over LCF collapse March 15, 2021 Bank of England governor Andrew Bailey has apologised for his role in failing investors of collapsed mini-bond firm London Capital & Finance. His apology came amid rising pressure about his responsibility in a series of scandals during his role as head of the Financial Conduct Authority. On Monday morning, Bailey told BBC Radio 4 that [...]
BoE boss Bailey expects a permanent shift to ‘hybrid working’ March 15, 2021 Bank of England governor Andrew Bailey today said that he expects working from home to stay, with a ‘hybrid’ model of home and workplace set to become the norm. Bailey told BBC Radio 4 that he predicts a permanent change as habits and practices are proved to be sustainable. “I would be very surprised if [...]
Bailey gives cautious endorsement of ‘coiled spring’ recovery and dampens inflation fears March 15, 2021 The Governor of the Bank of England has backed the economy to recover this year and cautiously endorsed his Chief Economist Andy Haldane’s prediction of a “coiled spring” recovery. Andrew Bailey told the BBC this morning that though current Bank forecasts predict a gradual recovery, there were welcome “risks to the upside.” Haldane has said [...]
Public’s inflation outlook holds at four-year low March 12, 2021 The public’s expectations for inflation over the next 12 months has held at their lowest level in more than four years, in sharp contrast to a recent rise in market expectations, Bank of England data has revealed. Average expectations for inflation over the next 12 months remained at 2.7 per cent – the joint-lowest reading since August 2016 alongside [...]
Pound sterling falls back to near $1.38 on US jobs data surprise March 5, 2021 Pound Sterling rises tempered by strong US economic figures
UK consumer credit slumped in January as lockdown took hold March 1, 2021 Consumer borrowing in January fell at its fastest pace since May last year as the country returned to lockdown, Bank of England data showed on Monday. Unsecured lending to consumers tumbled by £2.4bn, the biggest drop since last May’s £4.5bn hit. This takes the year-on-year fall to 8.9 per cent, the biggest decline since monthly [...]
UK bonds suffer biggest monthly fall in years February 26, 2021 UK bond prices recorded their sharpest fall in years this month, as investors bet on a rebound in growth and possibly inflation. The fall comes just days before the budget, in which Chancellor Rishi Sunak will set out his economics plans for the UK. The month’s sharp declines largely reflect a global sell-off led by [...]
Pound soars to pre-pandemic heights against euro amid vaccine rollout February 24, 2021 Pound soars to pre-pandemic heights against euro amid vaccine rollout
BoE policymaker: ‘Five per cent interest rates won’t return in my lifetime’ February 22, 2021 Bank of England policymaker Gertjan Vlieghe said he did not expect British interest rates to return to levels common before the 2008 financial crisis during his lifetime, due partly to the effect of an ageing population. Vlieghe, 49, said longer life expectancies and more time spent in retirement had boosted demand for safe retirement assets, [...]