Bank of England Monetary Policy Committee member Catherine Mann said on Tuesday that the newly discovered Omicron variant raises particular question marks over consumer confidence and may alter the rotation to service spending from spending on goods, according to Reuters.
BOE leaves policy rate unchanged
BoE last movements on coronavirus countering
BoE member Mann said on Tuesday that it was premature to talk about the timing of potential BoE rate hikes, much less how much. If Omicron puts us back into lockdown, Mann continued, some of the underpinnings in the moderation of goods price pressure may fade.
Bank of England Chief Economist Huw Pill said on Friday that a resurgence of the pandemic would mean that the bank would have to be more cautious, according to Reuters. There are risks on two sides for the economy, he added.
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Latest BoE related Analysis
BoE November meeting review
A decision on a knife's edge, or coin-toss – and it fell towards refraining from action. The Bank of England has left its interest rate unchanged at 0.1%.
The Bank of England's (BoE) Monetary Policy Committee (MPC) decided to leave the benchmark interest rate unchanged at 0.1% following the November policy meeting.
BoE September meeting review
The Bank of England's (BoE) Monetary Policy Committee (MPC) decided to leave the benchmark interest rate unchanged at 0.10% and kept the Asset Purchase Facility steady at £895 billion at the end of September policy meeting, as was widely expected.
BoE August meeting review
Inflation is transitory – that has been the message from Federal Reserve officials for months, and it has now been echoed by the Bank of England. That is only one of the similarities between central banks on both sides of the pond.
The Bank of England's (BoE) Monetary Policy Committee (MPC) decided to leave the benchmark interest rate unchanged at 0.10% following the August policy meeting and kept the Asset Purchase Facility steady at £895 billion as widely expected. "8 MPC members voted to keep rates unchanged."
Brexit is far from over
The UK has formally left the EU on January 31, 2020. However, Britain remains in a transition period, retaining most rights and obligations throughout the transition period which expires at the end of the year.
UK Prime Minister Boris Johnson has ruled out extending the implementation phase despite the COVID-19 pandemic. The deadline to request for such a prolongation passed on June 30. Without an accord, Britain will shift to World Trade Organization rules in 2021, an outcome seen as unfavorable for both sides, and especially the UK.
Several rounds of face-to-face and online talks have failed to yield substantial progress, with London and Brussels unable to reach a "landing zone" on fisheries, regulation, and a "level-playing field" – the EU's demand that the UK follows its rules in return for easy market access. Several political analysts expect to see progress only close to year-end.
What is the BOE?
Founded in 1694, the Bank of England (BoE) is the central bank of the United Kingdom. Sometimes known as the ‘Old Lady’ of Threadneedle Street, the Bank’s mission is "to promote the good of the people of the United Kingdom by maintaining monetary and financial stability".
The Bank of England is responsible for keeping the UK’s economy on the right track. They operate monetary policy by moving Bank Rate up and down and, in certain circumstances, we also supplement this with measures such as quantitative easing.
Who is BOE's president?
Andrew Bailey is Governor of the BoE and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Prudential Regulation Committee. The Governor joined the Bank on 16 March 2020. His appointment as Governor was approved by Her Majesty the Queen.
Interest rates latest news
The World Interest Rates Table
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.