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Articles tagged by Bank Of England

BoE Expects Monetary Policy Easing in Summer: Carney The Bank of England (BoE) is expecting that some “monetary policy easing will likely be required over the summer” as the “economic outlook has deteriorated” on the back of the UK voting to leave the EU, the BoE governor Mark ...
BoE Warns of Market Fragility After Brexit Vote A further deterioration in investor appetite for UK assets, together with a potential rise in the number of vulnerable households and increased fragility in financial markets are among the main risks that the Financial Policy Committee of the Bank of ...
BoE Surprisingly Maintains Rates at 0.5%, Expects Stimulus Measures in August In a surprise move the Bank of England’s Monetary Policy Committee overwhelmingly voted to maintain bank rates at 0.5% Thursday, although it said it expects to take some stimulus measures in August. At its meeting ending July 13, the MPC voted ...
Old Lady “Not a Nurse to Markets”, Says BoE Economist 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) ...
FEMR Implementation Report Sees “Significant Progress” The past year has seen “significant progress” in the implementation of the Fair and Effective Markets Review (FEMR) recommendations; however, “the job is far from being done” as a “lack of trust in financial markets” remains and the focus is ...
BoE Announces Brexit-Induced Stimulus Package 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 ...
Analysts Predict Further Rate Cuts After BoE Stimulus 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 ...
Markets Head to Leave Bank of England The Bank of England has announced that its deputy governor for markets and banking, Minouche Shafik, will leave at the end of February 2017. She is leaving to take up the post of director at the London Schools of Economics, having joined the bank in 2014 from the IMF. “We will say farewell to Minouche with gratitude and regret,” says Bank of England governor Mark Carney. “She helped drive vital reforms on the domestic and international stages, perhaps most prominently in the successful completion of the Fair and Effective Markets Review
No Surprises: BoE Holds Rates Steady 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.
Steady as She Goes: BoE Leaves Rates Unchanged 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.
The DNA of a Flash Crash A new paper uses trade repository data to forensically analyse the Swiss franc de-pegging and while Colin Lambert finds its conclusions are familiar, the paper offers other insights The story is familiar to anyone in the foreign exchange business – on January 15, 2015, the Swiss National Bank shocked the markets with the announcement it was abandoning its Swiss franc ceiling to the euro at 1.2000. Chaos ensued as EUR/CHF collapsed over 40% before recovering sharply, after which the industry was left to rake over the ashes of what was to many a debacle.
BoE’s Salmon Expects More Surprise Flash Moves in FX Chris Salmon, executive director, markets, at the Bank of England (BoE), said in a speech today that, while he has confidence in the ability of the FX market to process identifiable risks, he expects to see more surprise flash moves in this asset class. Speaking at the OMFIF City Lecture in London, Salmon looked at the depreciation of sterling following the UK Brexit referendum result and the sterling “flash crash” that took place on October 7, 2016, to provide insight into how the market is functioning.
Bank of England Appoints Deputy Governor for Markets Charlotte Hogg has been named deputy governor for Markets and Banking at the Bank of England. The appointment is effective from 1 March and for a renewable term of five years. Charlotte Hogg will succeed Minouche Shafik, who will leave at the end of February. In addition to taking on the role of deputy governor, Hogg will continue in her current role as chief operating officer. In the role Hogg will have specific responsibility for managing the balance sheet of the bank.
A Short Stay: BoE Deputy Governor Resigns After Two Weeks Just two weeks after officially taking up the position, the Bank of England’s deputy governor for Markets and Banking, Charlotte Hogg, has resigned. Hogg, who was also chief operating officer of the Bank of England, resigned because she failed to disclose her brother’s position at Barclays, an institution she would be overseeing. She had apparently tried to resign previously over the matter, but her resignation was knocked back by BoE Governor Mark Carney and Chair of the Court Anthony Hapgood.
FX Code Seeks to Drown Out Drumbeat of Scandal Following on the heels of the FX Fix scandal that rocked the FX industry over the course of the past few years, the Bank for International Settlements (BIS) set up a working group to draw up a Global Code of Conduct for FX market participants, by FX market participants. Several of those involved in crafting the Code addressed attendees of Profit & Loss Forex Network London to discuss some of the adherence and compliance mechanisms drafted into the Code. Speaking at the event, Chris Salmon, executive director, Markets, at the Bank of England (BoE), said: “The drumbeat of scandal in relation to the FX industry created issues for market practitioners, but it also became a concern for the central banks of the world.”
Bank of England Releases Money Market Code of Conduct The financial markets industry has another code of conduct to confirm with after the Bank of England released its new, voluntary, UK Money Markets Code, which sets out the standards and best practice expected from participants in the deposit, repo and securities lending markets. The Code is underpinned by the key principle that participants should always act in a manner to promote the integrity and effective functioning of these markets. It also outlines six high-level principles encompassing: ethics, governance, risk management, confidentiality, execution and settlement.
Carney Speech Prompts Sterling Slide 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.
New COO, Deputy Governor Appointed at BoE Joanna Place has been appointed as COO at the Bank of England (BoE) and Sir David Ramsden has been named as deputy governor for Markets and Banking at the central bank. Both appointments are effective immediately. Place has been acting as COO since 1 May, and previously was the executive director of human resources. The COO reports to the governor and has responsibility for the day-to-day management of the BoE including finance, technology, information and physical security, human resources, property, and procurement. The COO has status and remuneration equivalent to the deputy governors.
Regulators Must Keep Up with Fast Markets: BoE’s Salmon In a speech on Friday, Chris Salmon, executive director, Markets, at the Bank of England, discussed the changing market microstructure, in particular the advent of “fast markets” and stressed it was “incumbent” upon authorities to keep up. Salmon highlighted three recent flash events in financial markets, the equities market flash crash of 2010, the US Treasuries flash rally in 2014 and last year’s Cable flash crash and while he observed that sharp moves in asset prices are nothing new, “the speed, and the typical near-total reversal” is new.
Sonia Reforms in April 2018 – BoE The Bank of England has formally announced that its reforms to the Sonia interest rate benchmark will take effect on Monday 23 April 2018. The reforms, which were announced earlier this year and see Sonia replace Libor as the interest rate benchmark for UK markets, will result in the Bank of England taking on the end-to-end administration, including the calculation and publication of Sonia, broadening the coverage to included overnight unsecured transactions, and the use of a VWAP methodology to calculate the rate.
Carney Expresses Optimism Over FICC Misconduct Measures In a speech delivered today to the FICC Markets Standards Board (FMSB) in London, Mark Carney, Governor of the Bank of England (BoE), expressed optimism that new measures aimed at preventing misconduct in the FICC markets are having a significant impact.  These measures, set out two-and-a-half years ago in the Fair and Effective Markets Review (FEMR), are designed to improve confidence in FICC markets after a series of scandals.  “Multiple factors contributed to a tide of ethical drift in FICC markets. Market standards were poorly understood, often ignored and always lacked teeth. Too many participants neither felt responsible for the system nor recognised the full impact of their actions. Bad behaviour went unchecked, proliferated and eventually became the norm,” noted Carney in his speech.
Cox to Join BNP Paribas Profit & Loss understands that Chris Cox has left the Bank of England and is joining BNP Paribas in London. Cox is believed to be joining the bank in a new role leading the bank’s response to the FX Global Code of Conduct, ensuring it fulfils its intended Statement of Commitment to the Code and strengthening internal procedures to ensure compliance with the Code’s principles. Cox has been at the Bank of England for nine years, starting as an FX and money market trader and analyst.
Bank of England Commits to Three Codes of Conduct The Bank of England has today issued Statements of Commitment to the FX Global Code, the UK Money Markets Code and Global Precious Metals Code. The Bank says that in issuing the statements, it is demonstrating that it is committed to adhering to the principles of these Codes when acting as a market participant in the relevant markets, and that its internal practices and processes are aligned with the principles of the Codes. “The principles of these Codes are important in promoting the integrity and effective functioning of these respective markets,” it states.
Carney: Cryptos Pose No Risk to Financial Stability 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.
Salmon Steps Down from Bank of England, GFXC Chris Salmon, executive director, markets, at the Bank of England and chair of the Global Foreign Exchange Committee is stepping down to pursue an opportunity in the private sector. Although there has been no formal announcement from the Bank of England, the GFXC says in a release that Simon Potter, executive vice president of the Federal Reserve Bank of New York, will act as interim chair of the committee with immediate effect. A new chair will be elected at the next GFXC meeting, to be held on 27 June 2018 in Johannesburg.