The Bank of England on Thursday increased for the fourth consecutive time the base rate interest to 1% in an attempt to contain inflation and despite admitting the prospect of recession. The energy crunch, the Russian war in Ukraine, and lesser household incomes are expected to contribute to weaker growth.
The Bank of England’s Monetary Policy Committee (MPC) this week voted by a majority of 5-4 to increase Bank Rate by 0.25 percentage points, to 0.5%. Those members in the minority preferred to increase Bank Rate by 0.5 percentage points, to 0.75%.
Can’t we just print more money? is a new pop-economics book, written by the Bank of England, which will be published this May in partnership with Cornerstone Press (Penguin Random House).
A member of Bank of England's Monetary Policy Committee, Gertjan Vlieghe, openly supported the use of negative interest rates if the U.K. needs more stimulus, while Deputy Governor Dave Ramsden said the bank still had scope for more quantitative easing. which has been a tried and tested policy.
The Bank of England (BOE) told banks to start getting ready for negative interest rates but added that the message shouldn’t be taken as a signal that the policy is imminent. The BOE made the announcement as it held its key rate at a record low of 0.1%.
Even the Financial Times referred to the death of Diego Armando Maradona, one of the most gifted footballers to ever play the game. In effect, the FT recalls that while his dribbling prowess was world-renowned, fewer people know that his skills were used to construct one of the most memorable monetary policy analogies of all time.
The British High Court ruled on Thursday that the UK government “unequivocally recognized” Venezuelan opposition leader Juan Guaido as president of the country.
The Bank of England slowed the pace of its huge bond-buying program on Thursday as it saw some signs that the British economy was recovering from the unprecedented slump caused by the coronavirus lockdown.
The Bank of England said Britain could be headed for its biggest economic slump in over 300 years due to the coronavirus lockdown and kept the door open on Thursday for further stimulus.
The U.S. Federal Reserve and the Bank of England ramped up their emergency responses to the world's escalating coronavirus recession on Thursday as they pushed deeper into territory once considered fraught with risk for central bankers.