Bank of England (BOE)


BOE Interest Rate Decision

Valeria Bednarik
Yohay Elam

BOE Live Coverage - Today at 10:45 GMT

Is Carney concerned about UK growth? And does he still assume a smooth Brexit? The BOE is set to leave rates unchanged but its comments may certainly rock the pound. Join us here!

June meeting preview

BOE Preview: Will Carney cause carnage to GBP/USD?

The world's most prominent central banks have turned dovish – and it may the Bank of England's turn now. The BOE has been forecasting rate increases in the next few years to keep inflation and credit contained. The "Old Lady" has not acted due to Brexit uncertainty – which has paralyzed all policymaking. Nevertheless, Governor Mark Carney and his colleagues have been assuming a smooth Brexit and rate increases.

Bank of England Rate Decision Preview: The Fed example

The BOE is set to leave its base bank rate untouched at 0.75% when it publishes the minutes of its most recent Monetary Policy Committee meeting and its rate decision on Thursday. A unanimous vote is expected. Governor Mark Carney and the members of the MPC have repeatedly said that they want to gradually increase the base rate which despite two 25 basis point hikes in the last two years remains at an all-time low.

Latest BoE related News

Latest BoE related Analysis


May meeting review

Pound dips as BoE retains cautious approach

There’s been some small scale selling seen in the pound in recent trade after the Bank of England announced the outcome of their latest policy decision. Some speculation that MPC member Saunders would dissent proved misplaced as the rate-setting committee voted unanimously to keep the official rate unchanged at 0.75.


April meeting review

BoE unanimous in keeping rates unchanged

As was widely expected the rate-setters for the Bank of England have voted unanimously to keep the base rate on hold at 0.75%. It's not surprising the bank have decided to remain in wait-and-see mode given the major political uncertainty at present, and don't expect anything drastic from them until there's greater clarity on Brexit. The market reaction has been pretty quiet with the GBP/USD rate remaining near its lowest level of the day at $1.32.

BoE: Cautious but could still opt to raise rates in 2019 – ING

James Smith,developed markets economist at ING: “Importantly though, we think it’s too early to completely rule out a rate hike this year - although of course, this depends almost solely on Brexit.” “The Bank’s forecast of excess demand at the tail-end of its forecast period implies that more tightening could be needed than currently priced into markets.”


March meeting review

BoE unanimous in keeping rates unchanged

As was widely expected the rate-setters for the Bank of England have voted unanimously to keep the base rate on hold at 0.75%. It's not surprising the bank have decided to remain in wait-and-see mode given the major political uncertainty at present, and don't expect anything drastic from them until there's greater clarity on Brexit. The market reaction has been pretty quiet with the GBP/USD rate remaining near its lowest level of the day at $1.32.

BoE: Cautious but could still opt to raise rates in 2019 – ING

James Smith,developed markets economist at ING: “Importantly though, we think it’s too early to completely rule out a rate hike this year - although of course, this depends almost solely on Brexit.” “The Bank’s forecast of excess demand at the tail-end of its forecast period implies that more tightening could be needed than currently priced into markets.”


February meeting review

Bank of England lowers the growth forecast as Brexit uncertainty makes more damage

The Bank of England’s Monetary Policy Committee (MPC) held the Bank rate and the stock of the assets purchased unchanged in line with the market expectations while citing Brexit uncertainties ion lowering the short-term outlook for the UK growth. The Bank of England cited its own research in Agents summary to confirm that more than half of the UK companies began to implement no-deal Brexit contingency plans. Moreover, the Brexit uncertainty could lead to greater volatility of the economic data that would, in turn, be less of a signal for the outlook.

Pound slides as BoE deliver dovish hold

The Bank of England have kept their base rate unchanged at 0.75% as was almost unanimously expected, with a 9-0 vote split amongst rate-setters. The Pound has dropped to its lowest level in almost 3 weeks in the initial reaction and fallen back below the $1.29 handle, although it should be stated that the market reaction is fairly muted.

Sponsor broker



Big Picture

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?

Mark Carney is Governor of the BoE and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Prudential Regulation Committee. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.

The official website, on Twitter and YouTube

Carney

Carney on his profile and Wikipedia



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.


Preferred brokers in your location