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%”

Bank of England Raises Interest Rates Fifth Time to 13-year High 1.25%

The Bank of England MPC at its June meeting Thursday raised the key bank rate by 25 bps from 1.00% to 1.25%, as expected. The vote was 6-3 vs 8-1 expected (Haskel, Mann, Saunders voted to raise bank rate 50 bps to 1.50%). The BoE however may act more forcibly if more persistent inflation pressures are indicated. The Bank is balancing bringing inflation under control without plunging the economy into a recession. The move came a day after the Federal … Continue reading “Bank of England Raises Interest Rates Fifth Time to 13-year High 1.25%”

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

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, Mann, Saunders voted to raise bank rate 50 bps to 1.25%). The BoE said some further modest tightening may be appropriate in the coming months. The move followed a day after the Federal Reserve raised rates by a half of a percent at their May meeting. Inflation is at the … Continue reading “Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023”

Bank of England Raises Interest Rates Third Time to 0.75% With Inflation the Priority

The Bank of England MPC at its March meeting voted 8-1 Cunliffe dissented in favor of maintaining bank rate at 0.50%) to raise the Bank Rate from 0.50% to 0.75%. The BoE said some further modest tightening may be appropriate in the coming months. The move followed a day after the Federal Reserve Raised Rates for the first time since 2018. Inflation is at the highest rate for a decade, the sharpest annual incline for 10 years and well above … Continue reading “Bank of England Raises Interest Rates Third Time to 0.75% With Inflation the Priority”

Bank of England Raise Interest Rates by 25 bps from 0.25% to 0.50% as Expected

The Bank of England MPC at its February meeting voted 5-4 (Ramsden, Saunders, Haskel, Mann wanted to hike by 50 bps to 0.75%) to raise the Bank Rate from 0.25% to 0.50%. The BoE voted unanimously to reduce the stock of UK government bond purchases Inflation is at the highest rate for a decade, the sharpest annual incline for 10 years and well above the Bank’s 2% target.  The BoE has warned there was unlikely to be any reprieve over … Continue reading “Bank of England Raise Interest Rates by 25 bps from 0.25% to 0.50% as Expected”

Bank of England Unexpectedly Raise Interest Rates for First Time in Three Years

The Bank of England MPC at its December meeting voted 8-1 (Silvana Tenreyro dissented) to raise the Bank Rate from the historic low of 0.1% to 0.25%. The decision was a surprise amid a severe deterioration in the economic outlook with Omicron triggering a collapse in consumer confidence.  Inflation is at the highest rate for a decade, 5.1% in the 12 months to November, the sharpest annual incline for 10 years and well above the Bank’s 2% target.  Thw BoE … Continue reading “Bank of England Unexpectedly Raise Interest Rates for First Time in Three Years”

Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate

The Bank of England MPC at it’s November meeting voted 7-2 (Ramsden and Saunders dissented)to maintain Bank Rate at 0.1%. The Committee voted 6-3 (Ramsden, Saunders, Mann dissented) to maintain corporate bond purchases at £20 billion and government bond purchases at £875.   Highlights: Bank of England announced  September 23 2021 monetary policy decision Unchanged at prior 0.10% Official bank rate votes 0-0-9 vs 0-0-9 expected Bank rate vote 7-2 (Ramsden and Saunders dissented) Gilts Asset purchase target £875 bn … Continue reading “Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate”

Bank of England Holds Base Rate at 0.10%, UK Q3 GDP Expectations Revised Down

The Bank of England MPC at it’s September meeting voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously to maintain corporate bond purchases at £20 billion and government bond purchases at £875. Uncertainty around labour market outlook has increased

Bank of England Holds Base Rate at 0.15%, Target Asset Purchases at £895 billion

The Bank of England MPC at it’s March meeting voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously to maintain corporate bond purchases at £20 billion and government bond purchases at £875.

Bank of England Tenreyro Sees Rate Cuts and Stimulus On The Table

Bank of England’s Silvana Tenreyro said today her inclination is towards a rate cut if downside risks emerge, currently the BoE base rate is 0.75%. She added discussing the possibility of stimulus, current asset purchase target is £435 billion with a corporate bonds  £10 billion.