Tag: Bank of England

September 11, 2023

The Bank of England’s rapid pace of bond sales is creating a “selling gold at the bottom” moment for investors, according to Christopher Mahon, head of dynamic real return at Columbia Threadneedle. In the aftermath of the 2008 financial crisis, […]

February 22, 2023

The British Pound is trading on either side of 1.2100 against the US dollar, buoyed by better-than-expected data this week. While the US dollar is also strong, supported by rising US Treasury yields, Sterling is making gains against its counterpart […]

January 30, 2023

The US Dollar continues to tread water to start the week ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday. The market is anticipating a 25 basis point (bp) lift in the target rate. Friday’s PCE inflation data […]

January 24, 2023

After December’s impressive services PMI print, markets hoped for another encouraging print for January given a slightly improved outlook now that inflation appears to be headed in the right direction. This wasn’t to be the case as the new year […]

January 18, 2023

The British pound received support this morning after a mixed bag of inflation data. Headline inflation in the UK declined in line with expectations to 10.5% (see economic calendar below) while beat estimates likely due to labor shortages. The core […]

January 11, 2023

The euro extended yesterday’s gains against the British pound through ECB officials beginning yesterday. The hawkish narrative was reinforced by one of the more aggressive officials in Isabel Schnabel while today’s addresses included the ECB’s Villeroy who stated the need […]

November 3, 2022

The Bank of England raised its key interest rate by 0.75 percentage point on Thursday, its largest rise since 1989, as it fights a surge in inflation from rising energy prices even as the U.K. economy slides into an expected […]

October 14, 2022

Just five days after the former chancellor unveiled his mini-budget on 23 September, the Bank took unprecedented action to purchase long-dated UK government bonds, known as gilts, that are effectively government IOUs. Bonds are a principal way countries raise funds. […]

October 6, 2022

Responding to a letter from Treasury Select Committee chairman Mel Stride asking for greater clarity on why the Bank intervened at the end of September, Sir Jon Cunliffe, the Bank’s deputy governor for financial stability, said it launched an emergency […]

September 28, 2022

The Bank of England took emergency action Wednesday to stabilize U.K. financial markets and head off a crisis in the broader economy after the government spooked investors with a program of unfunded tax cuts, sending the pound tumbling and the […]

September 27, 2022

The British pound stabilized in Asian trading on Tuesday after plunging to a record low a day earlier, as the Bank of England and the British government tried to soothe markets nervous about a volatile U.K. economy. The instability began […]

August 4, 2022

The Bank of England projected Thursday that the United Kingdom’s economy will enter a recession at the end of the year as it hiked interest rates by the largest amount in more than 27 years, pushing to tame accelerating inflation […]

July 7, 2022

Sky News has learnt that the big four accountancy group briefed the 950 members of its top executive tier this week that it made average profit-per-partner of £920,000 in 2021-22 – up about 15% on the previous year’s figure. In […]

May 27, 2022

Yesterday, Rishi Sunak announced a £15bn relief package for low income/vulnerable households in an attempt to ease the burden of escalating inflation. The package will be partially funded by a new temporary windfall tax applied to energy companies as they […]

May 4, 2022

The Bank of England is widely expected to deliver another 25bps rate hike at its upcoming meeting. Although, in light of recent voting splits (Figure 1.) within the MPC, this will be key to the initial market reaction for GBP. […]

February 4, 2022

The British Pound remains reasonably well-bid after the Bank of England hiked interest rates by 25 basis points and revealed that 4 out of the nine voting members argued for a 50 basis point increase. An updated inflation outlook, with […]

November 23, 2021

European stocks are likely to open lower on Tuesday as inflation and rate-hike concerns dominate headlines. Doubts about whether the Bank of England will raise interest rates in December and concerns over the spread of Covid-19 in Europe may also […]

October 14, 2021

The strength of the recent advance in GBP/JPY is facing a key test at the 156.11 high recorded on May 27 and it will likely pause at that level as traders decide whether to keep buying the pair. If it […]

May 19, 2021

UK inflation more than doubled in April as the economy reopened and energy and clothing prices climbed sharply, official figures showed Wednesday, rising at its fastest pace in more than a year. Headline consumer price index inflation rose 1.5% in […]