Bank of England

The Bank of England will release the Monetary Policy Committees minutes for the meeting on the 6th November. The MPC voted to leave interest rates at the record low of 0.50% and the quantitative easing asset purchase programme is £375bn. The announcement was as expected, with little effect to sterling in the FX markets. The October minutes showed the vote was 7-2, with the two dissenters being Ian McCafferty & Martin Weale. Traders will be watching today’s minutes for a…

Continue Reading →

The Bank of England Monetary Policy Committee held their monthly meeting today and voted to leave the bank base rate unchanged at 0.50%, and the level of asset purchases (QE) at £375bn. The announcement was expected with minimal effect on Sterling in the FX markets. The minutes of the meeting will be released at 9:30am on 19th Novemeber, and offer further details as to the potential timing and the voting members. Press Release…

Continue Reading →

The Bank of England released the minutes from the MPC October meeting last week on 22nd October, coming in with a continued 7 - 2 vote on interests rates, and a 9 – 0 vote as expected on Asset Purchases. Ian McCafferty & Martin Weale were again the members that voted against the proposition of leaving interest rates unchanged, sticking by their preference of increasing the Bank Rate by 25 basis points.McCafferty citing that the relatively low level and pace of decline of spar…

Continue Reading →

Figures out this morning from the ONS show a massive slowdown in the prices of goods and services purchased by UK consumers in September. The Inflation figure fall from 1.5% in the previous month to 1.2% in this one, along with other economic shakes of recent weeks greatly slackens the pressure on the BoE and more than likely puts the date of an interest rate rise in the UK back even further in the new year. Inflation is now at its lowest mark in five years sitting only a whisker…

Continue Reading →

The Bank of England release the minutes from the MPC August meeting, with a surprise 7 - 2 vote on interests rates, and a 9 - 0 Vote as expected on asset purchases. Ian McCafferty and Martin Weale voted against the proposition of leave interest rates unchanged, preferring to increase Bank Rate by 25 basis points. This is the first time that any of the MPC has dissented from Carney's position of rates being held at 50 bps. GBPUSD Following yesterday's low…

Continue Reading →

Bank of England released their quarterly inflation report this morning, with the prepared headlines of increased expectations of growth and employment figures putting a bid into Sterling. However the move was short lived, as details of a rate hike projection before year end almost diminished. GBP weakened on the back of comments made in the press conference, as Carney attempted to talk the pound down. With unemployment dropping rapidly, the focus for the BoE has now moved to wage growt…

Continue Reading →

Data released by Markit/CIPS, showed better than expected UK service sector Purchasing Managers Index (PMI). In July Services PMI the figure was better than expected at 59.1, compared to Junes 57.6, with growth picking up pace. Service sector employment growth continued, which should contribute towards better UK ILO Unemployment figures. GBP In the FX markets sterling rallied on the back of the strong figure, with GBPUSD trading to session highs just shy of 1.69. The likeli…

Continue Reading →

The Markit/CIPS Manufacturing Purchasing Managers Index (PMI), growth continued in July, though missed expectations. The survey released at 9:30am (London), was 55.4 for July, down from 57.2 in June. The number was well above the 50 level (contraction/expansion level), however sterling has been weak in FX markets against the USD in the last few days. GBPUSD In the last quarter, the majority of macro releases were beating expectations, with Sterling trading at a 5-year high on int…

Continue Reading →

The Bank of England Monetary policy Committee (MPC) minutes for the meeting held on the 9th and 10th July, were released at 9:30am London. The MPC voted 9-0 to leave interest rates unchanged at 0.50% and asset purchases (QE) at $375 billion. The minutes noted: “Economists polled by Reuters expected the first increase in February 2015, although they put roughly a 40% probability on it happening during the remainder of 2014.” “..risk appetite on the month, l…

Continue Reading →

The Office for National Statistics has released the monthly unemployment figures, with the headline UK ILO Unemployment figure for May was in line with expectations at 6.5%. This is the lowest unemployment rate since October to December 2008; this was just before a significant amount of redundancies began. Jobless claims fell by 36,600, which is higher than the estimated reduction of -27,000 jobs. Wage Data The disappointing part of the data was the wage growth, average earnings…

Continue Reading →

The Office for National Statistics released the inflation data for June, with CPI increasing to 1.9%. Since the beginning of 2012, the CPI level had fallen from over 5%, down to 1.5% in May, which some analysts argued would reduce the pressure on the MPC increasing interest rates. The unexpected increase in inflation has put an immediate bid into sterling in the FX markets. Traders have bought Sterling on the basis that the potential first hike of interest rates will be sooner than the BoE&r…

Continue Reading →

The Bank of England announced at 12:00 (London) that the Monetary Policy Committee has voted to leave interest rates unchanged at 0.50% and asset purchases at £375bn. This was the expectation of analysts leaving the announcement a near non-event, traders focus will be on the minutes for the meeting that will be released on the 23rd July and next month’s quarterly inflation report. Both will give traders an opportunity to gauge the MPC’s outlook for the all-important timing…

Continue Reading →

UK manufacturing figures released on Tuesday by the Office for National Statistics, disappointed investors as they were well below expectations. Sterling has been riding high against the US dollar and Euro, has traders have digested the strong macro data, with the expectation the Bank of England will raise rates early than their current prediction. Today’s release unexpectedly missed forecasts which led to Sterling being offered in the FX markets, following last week’s multi-year…

Continue Reading →

Sterling has traded to the highest level since 2008 on Tuesday against the US dollar, following better than expected macro data. UK Manufacturing PMI for June at 57.5, up from 57.0 in May, a number above 50.0 states expansion. The other highlight of the report was job creation at a 39-month high adding to the positive sentiment for the UK economy. RT @World_First: UK Manufacturing PMI (June) = 57.5 vs 56.8 expected and 57.0 previous > Q2 growth surely over 1% — Mike Bi…

Continue Reading →

During a press conference held by the BoE yesterday, Governor Mark Carney issued details of their planned Financial Stability Report announcing the implementation of a series of prudent macro tools intended to help slow down the ever inflating recent UK house price bubble and to prevent an unsustainable build-up of consumer debt. Full details of the Report can be found here: http://www.bankofengland.co.uk/publications/Documents/fsr/2014/fsrfull1406.pdf Over the past four ye…

Continue Reading →