While speaking on the sidelines of the annual International Monetary Fund (IMF) meeting on Thursday, Bank of England Chief Economist Huw Pill said it was a finely balanced issue whether the Bank of England needed to tighten the policy further, per Reuters.
Following a quarterly meeting, the Bank of England’s (BoE) Financial Policy Committee (FPC) said on Tuesday, “some risky asset valuations appear "stretched", such as US tech stocks and Dollar high-yield and investment-grade bonds.”
BOE left interest rates unchanged on Thu, ending a series of 14 consecutive rate hikes since Dec 2021, when the Bank Rate was just at 0.10%. The Monetary Policy Committee (MPC) had voted 5-4 in favor of maintaining the policy rate, with four members preferring another 25 bps hike to 5.50%.
A close call gone in favor of doves? This is the first impression from the Bank of England's first unchanged rate decision in over a year. However, a closer look implies an end to the tightening cycle and cuts on the road, weighing on the Pound Sterling.
The Bank of England (BoE) announced that it left the policy rate unchanged at 5.25% following the September policy meeting. Markets were expecting the BoE to raise the interest rate by 25 basis points to 5.5%.
The Bank of England announced that it raised the policy rate by 25 basis points (bps) to 5.25% following the August policy meeting. This decision came in line with the market expectation. Two policymakers, Haskel and Mann, voted in favour of a 50 bps rate hike, while policymaker Dhingra voted to keep rates on hold.
Following its June policy meeting, the Bank of England (BOE) announced that it raised the policy rate by 50 basis points (bps) to 5%. Markets were expecting the BOE to hike the policy rate to 4.75%.
No recession – that has been the main message from the Bank of England (BOE) in its "Super Thursday" event. That has boosted the Pound, but doubts persist and for good reasons.
Following its May policy meeting, the Bank of England (BOE) announced that it raised the policy rate by 25 basis points (bps) to 4.5% as expected. Two policymakers, Tenreyro and Dhingra, voted to keep the policy rate on hold at 4.25%.
Following its March policy meeting, the BOE announced that it raised the policy rate by 25 bps to 4.25% as expected. Two policymakers, Tenreyro and Dhingra, vote to keep the policy rate on hold at 4%. "If there were to be evidence of more persistent pressures, then further tightening of monetary policy would be required," the BOE said in its policy statement.
Dovish Federal Reserve + hawkish Bank of England=more GBP/USD gains. For those trading cable, that is the bottom line. But, why are the same decisions interpreted differently? The Fed undoubtedly acknowledged the impact of the banking crisis on the path of raising rates. The BOE? Not so much. And there is more.
Founded in 1694, the Bank of England (BoE) is the central bank of the United Kingdom. Sometimes known as the ‘Old Lady’ of Threadneedle Street, the Bank’s mission is "to promote the good of the people of the United Kingdom by maintaining monetary and financial stability".
The Bank of England is responsible for keeping the UK’s economy on the right track. They operate monetary policy by moving Bank Rate up and down and, in certain circumstances, we also supplement this with measures such as quantitative easing.
The official website, on Twitter and YouTube
Andrew Bailey is Governor of the BoE and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Prudential Regulation Committee. The Governor joined the Bank on 16 March 2020. His appointment as Governor was approved by Her Majesty the Queen.
Bailey on his profile and Wikipedia
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
