Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023

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  • #33315
    TradersCom
    Keymaster

    BOE governor, Andrew Bailey

    There is a debate on whether to move gradually or do a larger move to send a message
    It is reasonable to have this debate
    But own view is that to take a more cautious step
    High price of internationally traded goods has persisted for longer than anticipated
    If there is any military action in Ukraine, that would be an upward risk for energy prices
    We are seeing some evidence that supply chain difficulty is easing but we need to see a lot more
    Fall in labor market participation has contributed to tighter labor market

    Ramsden: BOE surveys show businesses think they can push higher costs on to consumers

    • This reply was modified 5 months ago by TradersCom.
    #33334
    TradersCom
    Keymaster

    Does Bank of England actually have a plan?

    BOE’s Bailey late comments after today’s rise:
    It made sense for the BOE to move in 25 bps increments
    There is no end goal for balance-sheet reductions
    We will have to feel our way when it comes to selling gilts

    #33314
    Helmholtz Watson
    Participant

    The Bank of England MPC at its May meeting raised the bank rate by 25 bps from 0.75% to 1.00%, as expected. The vote was 6-3 vs 8-1 expected (Haskel,
    [See the full post at: Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023]

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