UK Economics Correspondent, London
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Mar 26, 2015

Bank of Canada says rate cut bought time, suggests April move unlikely

LONDON (Reuters) – The Bank of Canada’s January interest rate cut has bought it time to examine the effects of cheap oil on the economy, Governor Stephen Poloz said on Thursday in remarks that could signal the bank will hold rates steady next month.

Poloz allowed the possibility that first-quarter economic growth might come in lower than the bank’s 1.5 percent forecast, and he did not rule out a negative reading, but he also noted growth was expected to bounce back later this year.

Mar 26, 2015

Bank of England to quiz fund managers over short-notice redemptions

LONDON, March 26 (Reuters) – The Bank of England said on
Thursday that it planned to quiz British asset managers about
whether they could cope with a flood of investors asking for
their money back in times of market stress.

The central bank said it was concerned that some financial
markets — including those for fixed income assets — may be
less liquid than they looked, but that funds had promised they
could return investors’ money at short notice.

Mar 26, 2015

Bank of Canada says January rate cut bought it time

LONDON, March 26 (Reuters) – The Bank of Canada’s January
interest rate cut has bought it time to examine the effects of
cheap oil on the economy, Governor Stephen Poloz said on
Thursday in remarks that underscored the possibility the bank
will keep rates steady next month.

Poloz repeated the bank’s view that the negative effects of
lower oil prices in Canada, a major oil producer, are beginning
to appear and the positive effects will take longer to emerge.

Mar 25, 2015

Bank of England policymakers see scant need for rate cut

LONDON, March 25 (Reuters) – Three Bank of England
policymakers said on Wednesday they saw little chance of a cut
in interest rates in the face of tumbling inflation, distancing
themselves from the position of the central bank’s chief
economist.

BoE chief economist Andy Haldane surprised some observers by
saying last week that a recent sharp slowdown in inflation meant
the bank was as likely as not to cut rates – a view previously
rejected by BoE Governor Mark Carney.

Mar 25, 2015

Bank of England payment outage showed crisis management failures, report concludes

LONDON (Reuters) – A major outage last year in the Bank of England’s interbank payments system showed the central bank was not fully equipped to handle crises affecting Britain’s banks, a report published by the BoE showed on Wednesday.

The BoE suspended nearly 300 billion pounds ($447 billion) of payments for several hours on Oct. 20 after problems with its Real Time Gross Settlement system.

Mar 25, 2015

BoE payment outage showed crisis management failures, report concludes

LONDON, March 25 (Reuters) – A major outage last year in the
Bank of England’s interbank payments system showed the central
bank was not fully equipped to handle crises affecting Britain’s
banks, a report published by the BoE showed on Wednesday.

The BoE suspended nearly 300 billion pounds ($447 billion)
of payments for several hours on Oct. 20 after problems with its
Real Time Gross Settlement system.

Mar 24, 2015

Britain sees no inflation in Feb for first time on record

LONDON (Reuters) – British inflation vanished last month, hitting zero for the first time on record, official figures showed on Tuesday.

The annual rate of consumer price inflation dropped to zero percent, from 0.3 percent in January, the Office for National Statistics said, keeping a rate rise by the Bank of England firmly off the table for now.

Mar 19, 2015

Bank of England’s chief economist flags chance of interest rate cut

LONDON, March 19 (Reuters) – The Bank of England should
consider cutting interest rates if inflation threatens to fall
further below target than forecast, its chief economist said on
Thursday in remarks distancing him from other BoE officials.

Sterling hit the day’s low against the dollar after Andy
Haldane’s comments, which mark the first time a BoE policymaker
has said plunging inflation makes a cut in rates more than a
theoretical possibility.

Mar 18, 2015

UK’s Osborne woos voters with earlier end to austerity

LONDON (Reuters) – British finance minister George Osborne sought to court voters ahead of a tight May 7 election by pitching an earlier end to his austerity drive and cautious tax cuts against a backdrop of faster economic growth.

Osborne said Prime Minister David Cameron’s government had saved Britain’s economy and would bring down national debt earlier than forecast with a 22 billion-pound sale of state-owned bank assets.

Mar 18, 2015

UK debt chief fears further fall in bond market liquidity

LONDON (Reuters) – Britain’s government bond market risks becoming more volatile due to reduced liquidity and increased uncertainty over U.S. monetary policy, the head of the country’s debt issuance agency said on Wednesday.

Robert Stheeman, chief executive of the UK Debt Management Office, said banks were becoming less willing to trade gilts due to a mix of tougher regulation and changing business models, similar to other bond markets.

    • About David

      "David keeps a close watch on the UK economy, the Bank of England and the British government debt market. Previously he worked in Frankfurt, covering the European Central Bank and euro zone economy, and in Brussels where he reported on everything from EU summits to Belgian supermarkets."
      Languages:
      English, French, German
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