The Bank of England MPC at its May meeting Thursday raised the key bank rate by 25 bps from 4.25% to 4.50% as expected. It was the 12th consecutive rate hike and BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The vote was 7-2 (Tenreyro and Dhingra voted to keep rates unchanged, similar to the last meeting). BOE governor, Andrew Bailey reiterated in his press conference the bank will adjust the bank rate as necessary … Continue reading “Bank of England Raises Interest Rates 25bps to 4.50%, Inflation Remains Too High”
Bank of England Raises Interest Rates 25bps to 4.25%, Projects Inflation Likely Peaked
The Bank of England MPC at its March meeting Thursday raised the key bank rate by 25 bps from 4.00% to 4.20% as expected. It was the 11th consecutive rate hike and BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The vote was 7-2 (Tenreyro and Dhingra voted to keep rates unchanged, similar to the last meeting). The BoE’s projections again suggested CPI inflation has reached its peak, with Q2 CPI likely to be lower … Continue reading “Bank of England Raises Interest Rates 25bps to 4.25%, Projects Inflation Likely Peaked”
Bank of England Raises Interest Rates 50bps to 4.0%, Projects Inflation Likely Peaked
The Bank of England MPC at its December meeting Thursday raised the key bank rate by 50 bps from 3.50% to 4.00% as expected. It was the 10th consecutive rate hike and BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The vote was 7-2 (Tenreyro and Dhingra voted to keep rates unchanged, similar to the December meeting). The BoE’s projections again suggested CPI inflation has reached its peak, with the central bank dropping its pledge … Continue reading “Bank of England Raises Interest Rates 50bps to 4.0%, Projects Inflation Likely Peaked”
Bank of England Raises Interest Rates 50bps to 3.5%, Projects Inflation Likely Peaked
The Bank of England MPC at its December meeting Thursday raised the key bank rate by 50 bps from 3.00% to 3.50% as expected. BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The vote was 6-3 (However Tenreyro, Dhingra voted to keep rates unchanged at 3%, Mann voted to raise rates by 75 bps). The BoE’s projections suggested CPI inflation has reached its peak, and it is expected to remain “very high” in coming … Continue reading “Bank of England Raises Interest Rates 50bps to 3.5%, Projects Inflation Likely Peaked”
Bank of England Raises Interest Rates 75bps to 3% in Biggest Rise in 30 Years
The Bank of England MPC at its November meeting Thursday raised the key bank rate by 75 bps from 2.25% to 3.00% as expected. BoE’s benchmark rate has not gone up this quickly since November 1989 when it rose from 13.75% to 14.875%. An even bigger hike was briefly imposed on Black Wednesday in Sep1992 but was revoked by then Chancellor Lamont. The vote was 9-0 (However Tenreyro voted for 25 bps, Dhingra voted for 50 bps). The UK has … Continue reading “Bank of England Raises Interest Rates 75bps to 3% in Biggest Rise in 30 Years”
Eurozone Services, Manufacturing and Energy intensive Sectors Accelerate Lower in October
The Eurozone economy is falling the fastest since April 2013 barring pandemic lockdowns in October according to the latest S&P Global PMI™ data. Germany suffered the steepest economic contraction while growth in France merely stalled. Despite supply shortages showing further signs of easing, inflationary pressures remained elevated amid high energy costs and upward wage pressures. Manufacturing, and energy intensive sectors reported the steepest output loss. Services activity also continued to fall at an accelerating rate. Europe and UK Manufacturing PMI October … Continue reading “Eurozone Services, Manufacturing and Energy intensive Sectors Accelerate Lower in October”
Cable Pounded Again After Indecisive Bank of England Statement
The markets had been waiting for a statement from the Bank of England bout the collapsing Pound. Nothing it seems at this point other than watching. The BoE highlighted the ‘next scheduled meeting’ hinting no intra-meeting move is coming. This could be a game of course, knowing they need a short market for maximum impact. The Sterling and Gilt markets were looking for a stronger hint on intervention. GBPUSD is down 202 pips to 1.0639 after bouncing earlier BOE statement … Continue reading “Cable Pounded Again After Indecisive Bank of England Statement”
European Economic Downturn Deepened in September Amidst Growing Gloom
European flash Manufacturing and Services PMI readings for September for the eurozone weakened while the U.K.’s Manufacturing PMI improved slightly but remained in contractionary territory according to the latest S&P Global PMI™ data. The eurozone saw output decline again. Soaring energy prices added further to companies’ cost burdens, and also limited production in some cases, pushing survey price gauges higher to indicate a renewed acceleration of inflationary pressures. Europe and UK Manufacturing PMI September 2022 Eurozone’s flash September Manufacturing PMI 48.5 … Continue reading “European Economic Downturn Deepened in September Amidst Growing Gloom”
Bank of England Raises Interest Rates to 13-year High 2.25% Noted Sterling has Depreciated Materially
The Bank of England MPC at its September meeting Thursday raised the key bank rate by 50 bps from 1.75% to 2.25%, as expected. The vote was 9-0 (However Haskel, Mann, Ramsden voted for 75 bps, Dhingra voted for 25 bps). The BoE noted sterling has depreciated materially since August. Uncertainty around the outlook for UK retail energy prices has fallen after government’s energy support plan. Inflation is at the highest rate for a decade, the sharpest annual incline for … Continue reading “Bank of England Raises Interest Rates to 13-year High 2.25% Noted Sterling has Depreciated Materially”
Bank of England Raises Interest Rates Sixth Time to 13-year High 1.75%
The Bank of England MPC at its June meeting Thursday raised the key bank rate by 50 bps from 1.25% to 1.75%, as expected. The vote was 8-1 expected (Tenreyro voted to raise bank rate 25 bps to 1.50%). The BoE will be particularly alert to indications of more persistent inflationary pressures, and will, if necessary, act forcefully in response. Bank says policy is not on a pre-set path Inflation is at the highest rate for a decade, the sharpest … Continue reading “Bank of England Raises Interest Rates Sixth Time to 13-year High 1.75%”