Bank of England Maintains Interest Rates at 5.25%, Inflation Not Tamed Quickly Enough

The Bank of England MPC at its December meeting Thursday kept the key bank rate at 5.25% as expected in a 6–3 split vote. The bank left guidance on time spent at the peak unchanged, effectively leaving the door left equally open to another hike if needed. In that outlook recent jobs and inflation data were largely discounted by the BoE. There isa clear hesitation on whether declaring inflation being tamed quickly enough that they can soften language on the … Continue reading “Bank of England Maintains Interest Rates at 5.25%, Inflation Not Tamed Quickly Enough”

Bank of England Maintains Interest Rates at 5.25%, Emphasis on Cuts a Long Way Off

The Bank of England MPC at its November meeting Thursday kept the key bank rate at 5.25% as expected in a 6–3 split vote, and respectively lower and higher GDP growth and inflation forecasts. Changes to the key sections of the statement were minor. The only exception the BoE noting that their new forecasts suggest “policy is likely to need to be restrictive for an extended period of time.” This is supported by the BoE’s projections that see inflation only … Continue reading “Bank of England Maintains Interest Rates at 5.25%, Emphasis on Cuts a Long Way Off”

Bank of England Maintains Interest Rates at 5.25%, Higher for Longer, Increases QT Pace

The Bank of England MPC at its September meeting Thursday keeping the key bank rate at 5.25% which was unexpected by many despite recent lower inflation in the UK. Until today there had been 14 consecutive rate hikes and BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The BOE vote was 4-5 vs 8-1 expected (Bailey, Broadbent, Dhingra, Pill, Ramsden vote to hold). The bank unanimously deciding to increase the pace of reducing holdings of … Continue reading “Bank of England Maintains Interest Rates at 5.25%, Higher for Longer, Increases QT Pace”

Bank of England Raises Interest Rates to 15-year High 5.25%, Monetary Policy Restrictive

The Bank of England MPC at its July meeting Thursday raised the key bank rate by raised by 25 bps to 5.25% as expected, there was some clamoring for a 50bps hike. It was the 14th consecutive rate hike and BoE’s benchmark rate puts the cost of borrowing at the highest level since late-2008. The vote was 8-1 vs 7-2 expected (Dhingra dissented, Haskel and Mann voted for 50 bps). The bank risks pushing the UK into a brutal recession in … Continue reading “Bank of England Raises Interest Rates to 15-year High 5.25%, Monetary Policy Restrictive”

The British Pound Crisis Revisited, Will There be Deja Vu?

The Bank of England raised rates 50 bps last week as the bank battles with rampant inflation and the government and MPC appear to be willing to risk sending the British economy into recession to arrest spiraling prices. There is balancing act managing a confluence of inflation, economic stagnation, and financial fragility. With that and some of the Gilt action of late there have been concerns of another crisis in confidence that could hit the pound. In September last year … Continue reading “The British Pound Crisis Revisited, Will There be Deja Vu?”

Bank of England Raises Interest Rates to 15-year High 5.00%, Risk of British Recession Increases

The Bank of England MPC at its May meeting Thursday raised the key bank rate by raised by 50 bps to 5.00% as expected by many after the previous days hot inflation numbers. It was the 13th 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 bank risks pushing the UK into a brutal … Continue reading “Bank of England Raises Interest Rates to 15-year High 5.00%, Risk of British Recession Increases”

Bank of England Raises Interest Rates 25bps to 4.50%, Inflation Remains Too High

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”