Money markets ramp up global rate hike bets
As inflationary pressures mount worldwide, money markets are charging ahead with pricing aggressive interest rate rises. Energy prices at multi-year highs and relentless supply chain snarls have raised fears of a future inflation spike. Norway and New Zealand have become the first developed countries to lift rates as economies recover from the pandemic crisis. And hawkish shifts […]
Scrapping banker bonus cap not a priority
Bank of England Deputy Governor Sam Woods said that scrapping a cap on bankers’ bonuses inherited from the European Union is not a top priority. Other curbs on remuneration that are aimed at fostering financial stability should not be weakened. Britain’s departure from the EU has raised hopes in the financial sector. Some rules might be changed. […]
Bank of England expected to keep rates steady
Britain’s central bank looks set to keep interest rates steady. This is because, it approaches the end-point of its 895-billion-pound asset purchase program. They are casting a wary eye over surging inflation pressures. Investors will be keen to see if more Monetary Policy Committee (MPC) members join external member Michael Saunders. The BoE is ahead […]
UK inflation expectations shows a record jump
The British public’s expectations for inflation have shot up in this year. Citi claimed that this is by a record amount raising the risk that the Bank of England will send a hawkish message soon. The Citi/YouGov monthly inflation expectations survey showed that public inflation expectations for the next year has jumped to 4.1% in […]
BoE to penalize fossil fuel financing says UK lawmakers
The Bank of England was called on help to tackle climate change, by the UK lawmakers. This is by boosting the investment in green finance and by penalizing banks that finance the fossil fuel industry. The intervention by a cross-party group of 51 lawmakers comes ahead of the COP26 global climate talks, that is to be held in […]
COVID hitting timing of Basel bank capital rules
Countries are facing challenges in rolling out final elements of tougher global bank capital rules. A senior Bank of England official said that this may need to coordinate on timing. The rollout of the rules known as Basel III began after the global financial crisis. This had highlighted how banks were holding too little capital by forcing taxpayers to bail […]
BoE aims for large but lean balance sheet when QE unwinds
The Bank of England is expecting to have a large but leaner balance sheet when it starts to run down its 895-billion-pound asset purchase program. It will take steps to ensure this does not push up short-term rates. Andrew Hauser, the BoE’s executive director for markets, said that the financial markets should not expect the central bank […]
Big Tech cloud services could face resilience test
Amazon, Google and other tech companies providing cloud computing to banks in Britain. A senior Bank of England official said that, this may have to comply with minimum resilience standards and testing. The BoE, along with regulators in Europe and the United States, is worried about the reliance of banks of Big Tech firms for cloud computing. This is […]
EU pressure should be waited out all banks, says Bank of England
Bank of England Governor Andrew Bailey said that all the Banks should hold their nerve in the face of European Union pressure to shift euro derivatives clearing from London to the bloc. Since Britain fully left the EU, the bloc has asked banks to move euro clearing from London. This has resulted in the bulk of activity, […]
Former Goldman economist Pill is named to top economics role by BoE
The Bank of England named Huw Pill, a former chief European economist at Goldman Sachs with lengthy previous experience at the European Central Bank, as its new chief economist. He replaced Andy Haldane, who stepped down earlier this year. Governor Andrew Bailey said that Huw will make a major contribution to monetary policy, and also to the broader […]