The Bank of England Monetary Policy Committee (MPC) arguably faces its toughest test this week, facing rising pressure to lower interest rates at a time when inflation, its official remit, is at decad...

It is highly likely that the Bank of England will reduce the Official Bank Rate at its October 8-9 meeting and while a 25 basis point cut to 4.75% is the most likely scenario, it is well within the re...

Due to recent comments by members of the Monetary Policy Committee (MPC), growing financial convulsions and a bleak economic outlook, we revise our interest rate forecasts for the Bank of England (BoE...

The Bank of England's Special Liquidity Scheme has allowed UK banks to swap illiquid assets for treasury bills since April. The SLS has been enormously popular among UK banks as this has given them fu...

After meeting September 3-4th, Bank of England policymakers left the Bank Rate at 5.0%, the same decision that was made in the four previous monthly meetings, but minutes released from that meeting do...

BoE September minutes reveled a split 1-8 vote, with Besley voting with the majority for a steady hand after two consecutive months of favoring a 25 bp rate hike. Meanwhile, Blanchflower now voted for...

US interest rates and rate expectations fell sharply from mid-2007 through early 2008, but the term structure on the US dollar yield curve clearly shows markets expect much more through the coming two...

For a fifth straight meeting, the Monetary Policy Committee of the Bank of England decided not to change its Bank Rate. Britain has entered a recession, but inflation is more than twice as high as the...

The Bank of England's Monetary Policy Committee decided to leave the official bank rate unchanged at 5.00%. This is the sixth consecutive meeting in which bank officials decided to keep the current mo...

The Bank of England's key rate has been at 5.0% for the past five months after three reductions of 25 basis points each last December, February, and April. The surprising thing about this week's meeti...

The market is expecting to see the reserve Bank of Australia reduce overnight lending to 7.00% on Tuesday, a cut of 25 basis points in a move that looks as though has already been priced into Aud/Usd ...

The pound fell close to 1500 pips in the past two weeks, practically shedding every gain the pair had made in the last two years, due to the market's view the Bank of England will cut at the following...

The minutes of the Bank of England meeting committee show the focus of the bank remains on inflation and anchoring the inflation expectations. There were conversations about the possibility for a rate...

The market reaction to the Inflation Report was quite strong; EUR/GBP rose from 0.7860 to 0.7930, before falling slightly back. The yield on the 2Y UK gilt dropped around 15bp to 4.52% after the relea...

After raising interest rates in July, the ECB left rates unchanged today as expected. With oil prices down 20% from the time of the Governing Council's (GC) July meeting, and GDP and other economic in...

On Thursday, August 7, the Bank of England and the European Central Bank will each announce their monetary policy decisions. Expectations are for both banks to leave rates steady, but given the steep ...

In line with market participants, we expect the Bank of England (BoE) to hold interest rates at the current 5%. The dilemma of rising inflation and slower growth is unchanged. It is notably the high f...

The Federal Reserve's most recent Beige Book report summarized the current economic and financial situation best, as it noted rising price pressures, slowing growth, and tightening credit. However, ma...

The BoE voted 7-1-1 to keep their benchmark rate unchanged at 5.00%, with Tim Besley calling for a rate hike and David Blanchflower a cut. The MPC stated that the path of inflation would likely be hig...

A speech by Philadelphia Fed President Charles Plosser drove the US dollar higher on Tuesday morning, as he signaled that he would be voting to increase interest rates at the next Federal Open Market ...

The Bank of England (BoE) left interest rates unchanged today at 5.00%. The decision was widely expected as rate cuts in February and April have been followed by rising uncertainty over the prospects ...

In recent weeks, the GBP/USD has moved within the 1.96-2.00 range, and remains range-bound as the Bank of England maintains a hawkish outlook on inflation but cautious stance on the economic downturn....

We do not expect the Bank of England to follow the example of the ECB and raise interest rates to dampen inflation since most indicators point to that the British economy will continue to face difficu...

There is no doubt that the European Central Bank remains extremely hawkish, especially as estimates for Euro-zone CPI have rocketed to a fresh 16-year high of 4.0%. As a result, the markets are widely...

With a rate decision by the Federal Reserve on the way on Wednesday, FOMC voting members have been mum on monetary policy as to avoid exacerbating any market bias. The Fed is widely expected to keep r...

Wage inflation is the key to whether there is a rise in UK interest rates this year. As the Governor said in his open letter to the Chancellor following the rise in annual CPI inflation to 3.3% in May...

The Bank of England voted 8-1 to keep rates on hold at 5.00% during its last monetary policy meeting. Perennial Dove David Blanchflower was the only member to call for a rate cut, stating that the gro...

There's no doubt the Federal Reserve holds a much more hawkish bias nowadays, but is their stance extreme enough to warrant a preemptive rate hike next week? No. While we may see ultra-hawkish FOMC me...

UK's CPI for May rose by 3.3% y/y. This has caused the Bank of England (BoE) Governor Mervyn King to write an explanatory letter to Chancellor Alistair Darling on why inflation is now more than one pe...

The Bank of England left their benchmark interest rate unchanged at 5.00% as inflation concerns continue to override a slumping economy. Governor King has continued to maintain that as long as inflati...

On Thursday, June 5, the Bank of England and the European Central Bank will each announce their monetary policy decisions. Expectations are for both banks to leave rates steady, but given the steep de...

The Bank of England is expected to leave rates unchanged at Thursday's monetary policy meeting, as inflation continues to rise on increasing fuel and food costs. Governor King stated that in the centr...

The BoE voted 8 to 1 to keep the benchmark rate unchanged at 5.00% at their May 8th policy meeting due to inflation concerns. Perennial dove David Blanchflower was the only dissenter calling for a qua...

The long-awaited inflation report from Bank of England is due shortly before lunchtime today. The minutes from the MPC meeting in March lead us to suspect that the inflation report due today will poin...

The BoE left their benchmark interest rate unchanged at 5.00%, in order to gauge inflation risks. The central bank has been concerned with inflation breaching its 3% threshold, which requires Governor...