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”

Brexit and Lockdowns See FTSE 100 Have Worse Year Since 2008 in 2020

The UK’s Blue-Chip FTSE 100 suffered its worst year since the 2008 financial crisis in 2020. On the last day of the year, it closed 1.5% lower at 6,460, down 14.3% for the year. Stocks were hit by the Covid-19 pandemic lockdowns and Brexit uncertainty. Other than in Spain, Britain’s top stocks were the poorest performer among the largest global stock indices. The FTSE 100, known as the Footsie, started the year at 7,542 points and closed on New Year’s … Continue reading “Brexit and Lockdowns See FTSE 100 Have Worse Year Since 2008 in 2020”

UK Affirmed AA by Fitch, Off Ratings Watch Negative, Brexit Deal Expected

Rating agency Fitch affirmed UK at ‘AA’ and removed them from Rating Watch Negative (RWN). The Outlook is Negative. Forecast highly likely UK leaves EU with an agreement on Jan 31 2020. Uncertainty regarding future of UK and EU relations for some time.