Bank of England

Bank of England Governor Mark Carney has warned the “great risk” of unwinding the current quantitative easing programme. The stimulus was headed by his predecessor Mervyn King, a mixture of ultra-low interest rates and QE. Carney was speaking to the House of Lords, mentioning the risk of the Federal Reserves tapering of their QE, and how the BoE might execute its unwind. This is a difficult task, as the UK economy is staging a recovery, though there is concern increasing in…

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As expected, the Bank of England has left interest rates unchanged at 0.5% and asset purchases at £375bn. The full release from the BoE can be found here. @BankofEngland maintains #BankRate at 0.5% and the size of the Asset Purchase Programme at £375 billion — Bank of England (@bankofengland) December 5, 2013 The release at 12pm today, came during the Chancellor George Osborne’s Autumn Statement with the opposition still responding.…

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The Bank of England Monetary Policy Committee voted unanimously to hold interest rates unchanged at the record-low rate of 0.5%, and the level of asset purchases at £375bn. Under the Banks forward guidance policy the focus had been on the unemployment level falling to the threshold of 7%. However this target was left in question following the BoE Inflation report with Carney, saying the bank might not raise rates immediately following a drop in unemployment. MPC Vote…

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The Bank of England governor Mark Carney’s comments during the latest inflation report on Tuesday. Prior to the news conference Sterling was bid on the back of the better than expected employment figures, which had traders predicting that the BoE would raise rates sooner than had been predicted. Under the banks forward guidance, 7% unemployment level had been the threshold, highlighted by Carney as the level that monetary policy would begin to be tightened. This was thrown in to…

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UK ILO Unemployment beat expectations, coming in at 7.6% vs expectations of 7.7%. The number of unemployed people in the UK fell 48,000 to 4.27million. The Bank of England’s forward guidance; focused upon a headline unemployment rate of 7%. Today’s figure is a positive step towards this level, which potentially will see an increase in interest rates in the not too distant future. However one potential concern highlighted by analysts is the relatively stable hourly earnings…

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On Monday, there was further good news for the UK economy, as the Construction PMI was released at the highest level since 2007. The British economy is beginning to see sustainable growth following the economic crisis that began over 5 years ago. The positive macro data adds further pressure on Carney, that the Bank of England will need to bring forward the tightening of monetary policy. UK #construction PMI highest since Sep'07, = c2.5% q/q growth rate for sector & big GD…

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Sterling was given a boost in early trade as comments from the Governor of the Bank of England Mark Carney. The Governor had been making visits to cities in the North of England and was interviewed by local newspapers Thursday, as these comments reached traders on Friday morning Sterling jumped against the greenback by 80 cent to a session high of 1.6132. Quantitative Easing Analysts and market commentators have been quick to criticise to the timescale of policy tightenin…

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As expected the MPC have left interest rates on hold at 0.50% and quantitative easing at £375bn. Carney is now under pressure following the recent better than expected data points from the UK, pointing to a recovery that it is gaining traction. The Governors Forward Guidance, of ultra-loose monetary policy seems to be being ignored by the markets, as traders believe that the bank will be forced to raise rates earlier than forecast. The minutes of the meeting will be publish…

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*In the US it is a national holiday today, Independence day. This will affect the trading hours of certain markets with us remaining closed for the session, please see your client emails for further details* The markets seem relatively subdued this morning ahead of BoE and ECB announcements, with the US closed for Independence Day volumes are likely to be lower. Bank of England Mark Carney began his term as the first foreign national to become the Governor at the Bank of En…

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This morning the Ex-Bank of Canada Governor begins his role as the new Bank of England Governor, taking over from Sir Mervyn King. Carney is the first foreign national to hold the senior post on Threadneedle Street, and many are hoping he will be able to work miracles. The UK economy is just beginning to show the green shoots of a recovery following a deeper recession than previously thought according to the ONS. The BoE has attempted to reignited growth with ultra-loose monetary polic…

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Bank of England Minutes of the MPC Meeting Held on 8 and 9 May 2013: http://www.bankofengland.co.uk/publications/minutes/Documents/mpc/pdf/2013/mpc1305.pdf Above is the link to the Bank of England website, for the full PDF release. The link is hosted on an external website, which Abshire-Smith do not take responsibility for its content or any liabilities.…

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The Bank of England releases their minutes from the previous MPC meeting at 9:30am, the immediate headline will be how the members voted on the interest rate and asset purchases. Investors will then look for a change in stance or hints regarding the future policy; interest rates have been held at a historic low since 2009. The current does of ultra-loose monetary policy will need to be withdrawn at some point in the not too distance future, though analysts believe that the next Governor Mark…

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Articles in the press are highlighting the recent data from the UK and how the economy is starting to show signs of the long awaited recovery: The CBI predicts that the UK GDP will grow by 1% this year and 2% next. The ONS now believes that the UK avoided the publicised and heavily criticised “double-dip” recession The Telegraph reported on Monday that Governor of the Bank of England Mervyn King might revise their growth forecast higher before he steps down in…

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The Bank of England is to make its monthly interest rate announcement alongside any further changes to the asset purchase facility at 12pm. The consensus is that the central bank will refrain from making any changes from the current course of quantitative easing (£375bn) and interest rates on hold at a record low 0.50%. There are expectations that the MPC will wait until Mark Carey becomes governor before increase the current level of asset purchases. Recent macro data from the UK has…

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On Thursday the eagerly anticipated preliminary reading for UK GDP Q1 from the ONS showed that the UK had avoided a dreaded triple-dip recession, for now. Chancellor, George Osborne has been under considerable pressure to change course away from the current path of austerity. Following consecutive readings of poor economic data, criticism from the IMF and a downgrade by Fitch, Osborne has some briefing space. The ONS expect the UK economy to grow by 0.3%, which might be the milestone remembe…

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