The UK labour market could suffer permanent scarring as a result of the coronavirus, according Bank of England chief economist Andy Haldane, who told ITV’s Robert Peston in an interview that there’s “a good chance” that coronavirus will accelerate a shift toward knowledge-based digital industries that was already in train before the pandemic ravaged the […]
Mark Carney, Governor of the Bank of England, has agreed to extend his term to January 2020.
In a letter to Carney published today, Philip Hammond, the UK Chancellor of the Exchequer, said: “Further to our discussions and those that I have had with the Prime Minister, I am writing to ask whether you would be able to extend your term as Governor of the Bank of England to January 2020 to support a smooth exit of the United Kingdom from the European Union and an effective transition to the next Governor.”
In his reply, the Governor said: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.
In a speech delivered today, Bank of England Governor, Mark Carney, stated that crypto-assets don’t currently pose a risk to the stability of financial markets, even as he declared that cryptocurrencies are “failing” as a form of money.
Speaking at the inaugural Scottish Economics Conference at Edinburgh University on the subject of the future of money, Carney’s speech was heavily focused on cryptocurrencies.
Addressing the question of how well cryptocurrencies fulfill the traditional role of money, Carney argued that the answer has to be judged against the functioning of the entire cryptocurrency ecosystem. This ecosystem includes exchanges that enable the buying and selling of cryptocurrencies, miners who create new coins and verify transactions and the wallet providers who effectively offer custody services.
The value of sterling slid today as Bank of England (BoE) Governor, Mark Carney, indicated that there would be no immediate adjustment of monetary policy by the central bank.
In a speech delivered at Mansion House in London, Carney declared that “now is not yet the time to begin” monetary adjustment, ruling out the possibility of an interest rate hike.
GBP/USD promptly dropped from 1.2753 at 8am BST to 1.2631 just before 3pm BST in response to Carney’s comments. “Since the prospect of Brexit emerged, financial markets, notably sterling, have marked down the UK’s economic prospects.
The Bank of England’s (BoE) Monetary Policy Committee (MPC) today voted unanimously to maintain Bank Rate at 0.25%.
The Committee also decided to continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves.
Additionally, it will continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.
Sterling jumped almost 100 pips today after the British High Court ruled that the UK parliament must vote on Brexit before it is formally triggered by Article 50.
The government is expected to appeal the court’s decision, but in the meantime, sterling rose from 1.2335 at 10am UK time to peak at 1.2494 by 1:15pm, its strongest since the October 7 flash crash.
The other big news in the UK today was that the Bank of England’s Monetary Policy Committee (MPC) voted unanimously to maintain Bank Rate at 0.25%.
The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously to maintain the measures it introduced in its Brexit-induced stimulus package announced in August.
This means that it will hold the Bank Rate at 0.25% and continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves.
The MPC also voted unanimously to continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.
Expect further rate cuts from the Bank of England (BoE) as Governor Mark Carney shows that he is willing to let sterling continue depreciating, say analysts. “The package of stimulus announced by the Bank of England has prompted a significant market reaction,” notes Adam Chester, head of economics at Lloyds Commercial Banking. He adds: “Immediately […]
The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously in favour of a 25 basis point cut in Bank Rate to 0.25%. It also voted for a new Term Funding Scheme to reinforce the pass-through cut in Bank Rate, up to £10 billion corporate bond purchases and an expansion of its asset […]
The Bank of England (BoE) will not ease interest rates just to appease the expectations of the market or to reassure consumers and businesses following the Brexit vote, warned Martin Wheale, an external member of the Monetary Policy Committee (MPC) at the central bank. In his final speech as a member of the MPC, Wheale […]