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”

FTSE 100 Recovers in 2021 To Be up 14.3% After 2020 Annus Horribilis

UK’s Blue-Chip FTSE 100 recovered in 2021, its best year since 2016, after suffering its worst year since the 2008 financial crisis in 2020. On the last day of the year, it closed 0.3% lower at 7384, up 14.3% for the year. Stocks recovered from some of the Covid-19 pandemic lockdowns and Brexit uncertainty. Other than in Spain, Britain’s top stocks were the poorest performer among the largest European stock indices. FTSE 100 closed at 7384 points on Friday, having … Continue reading “FTSE 100 Recovers in 2021 To Be up 14.3% After 2020 Annus Horribilis”

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.