The Bank of England's (BOE) Monetary Policy Committee (MPC) decided to leave the policy rate unchanged at 0.1% at its June policy meeting as expected. Furthermore, the BoE ramped up the Quantitative Easing (QE) program by £100 billion to £745 billion.
BoE boosts bond-buying as expected, GBP/USD down
BoE last movements on coronavirus countering
The decision on negative rates is not in any sense imminent, Bank of England (BoE) Governor Andrew Bailey said on Thursday and reiterated that it's a complex issue.
The Bank of England has maintained its Bank rate unchanged at 0.1% and has announced an increase in the target of asset purchases...
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BoE June Meeting Review
Is that all folks? The pound has recovered its pre-Bank of England losses but seems reluctant to bounce. It may now be headed down for these three reasons.
BoE MAY Meeting Review
A sharp temporary slump with a slow recovery – that is the gist of the Bank of England's early morning rate decision – follow live . Governor Andrew Bailey seems to be out of the "V-shaped recovery" camp which continues shrinking. The situation is so worrying that two members voted to expand the bank's Quantitative Easing program beyond the already broad level of £645 billion – increased by 45% in the March decision.
BoE MARCH Meeting Review
The Bank of England's Monetary Policy Committee held the policy rate unchanged at 0.1% in March after making two emergency rate cuts earlier in the month to help the economy in the face of the coronavirus outbreak. The Asset Purchase Facility remained steady at €645 billion as well.
BoE Surprise Interest Rate Decision
As is all the trend now, the Bank of England announced further easing measures this afternoon in another unscheduled response to the coronavirus crisis. The move triggered a little bit of activity in the pound, which has come under considerable pressure over the last week or so, before settled around the pre-announcement levels.
The BOE lowered rates to 0.10%. The BOE says it will increase holdings of government bonds (new QE). The vote was unanimous. It has been a traumatic first week for the new Governor Andrew Bailey. Cable leapt to 1.1650. The UK runs a relatively big currency account deficit, and this exposes the currency during heightened risk aversion.
Brexit negotiations, exploring unknown territory
The progress in Brexit negotiations is slower than expected. The next round of negotiations, originally scheduled on September 18, is postponed by a week. Media reports suggested that UK's PM Theresa May was preparing to make an "important intervention" on the talks. While the UK urged the EU to be more flexible and to move to trade deals, the EU insisted that the “divorce bill” issue has to be resolved first. EU's chief negotiator Michael Barnier noted last week that he was “very disappointed” by the UK government as it “seems to be backtracking” on commitments to the bill.
While the hawkish members, mainly Michael Saunders and Ian McCafferty, would warn of strong inflation on the economy, the rest would consider the overall economic environment and uncertain outcome of Brexit as key factors to keep the monetary policy unchanged.
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.
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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.