Catherine Mann, member of the Bank of England’s Monetary Policy Committee, said on Monday that overtightening is easier to fix than not moving interest rates. She added that underestimating the persistence of inflation will lead to overshoot. Mann delivered a speech at the Canadian Association for Business Economics. She explained that the idea that 3% inflation is close enough can not be the guide for the BoE.
BoE pauses in September in response to softening inflation
LATEST BOE MEASURES TO BATTLE INFLATION
According to the quarterly survey conducted by the Bank of England (BoE), UK public inflation expectations for the coming year are seen at 3.6% in August, compared with a 3.5% figure predicted in May.
Bank of England (BoE) Deputy Governor appointee, Sarah Breeden, said on Tuesday, “I agree with the MPC that the risks to inflation around the August forecast are to the upside.”
Latest BoE related News
BoE september meeting review
A close call gone in favor of doves? This is the first impression from the Bank of England's first unchanged rate decision in over a year. However, a closer look implies an end to the tightening cycle and cuts on the road, weighing on the Pound Sterling.
The Bank of England (BoE) announced that it left the policy rate unchanged at 5.25% following the September policy meeting. Markets were expecting the BoE to raise the interest rate by 25 basis points to 5.5%.
BoE august meeting review
The Bank of England announced that it raised the policy rate by 25 basis points (bps) to 5.25% following the August policy meeting. This decision came in line with the market expectation. Two policymakers, Haskel and Mann, voted in favour of a 50 bps rate hike, while policymaker Dhingra voted to keep rates on hold.
BoE june meeting review
Following its June policy meeting, the Bank of England (BOE) announced that it raised the policy rate by 50 basis points (bps) to 5%. Markets were expecting the BOE to hike the policy rate to 4.75%.
BoE may meeting review
No recession – that has been the main message from the Bank of England (BOE) in its "Super Thursday" event. That has boosted the Pound, but doubts persist and for good reasons.
Following its May policy meeting, the Bank of England (BOE) announced that it raised the policy rate by 25 basis points (bps) to 4.5% as expected. Two policymakers, Tenreyro and Dhingra, voted to keep the policy rate on hold at 4.25%.
BoE march meeting review
Following its March policy meeting, the BOE announced that it raised the policy rate by 25 bps to 4.25% as expected. Two policymakers, Tenreyro and Dhingra, vote to keep the policy rate on hold at 4%. "If there were to be evidence of more persistent pressures, then further tightening of monetary policy would be required," the BOE said in its policy statement.
Dovish Federal Reserve + hawkish Bank of England=more GBP/USD gains. For those trading cable, that is the bottom line. But, why are the same decisions interpreted differently? The Fed undoubtedly acknowledged the impact of the banking crisis on the path of raising rates. The BOE? Not so much. And there is more.
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.