UK Economics Correspondent, London
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Sep 11, 2014

Bank of England’s Kohn urges banks to focus on risks from end to quantitative easing

LONDON (Reuters) – British banks need to prepare for the risk of financial market turmoil when central banks end unconventional monetary policy such as asset purchases, the Bank of England said on Thursday.

Don Kohn, a former vice-chairman of the U.S. Federal Reserve who now serves on the BoE’s main risk watchdog, told British banks to guard against the risk of defaults, sharp rises in market interest rates and illiquid assets as monetary policy returns to normal after the financial crisis.

Sep 11, 2014

Bank of England’s Kohn urges banks to focus on risks from end to QE

LONDON, Sept 11 (Reuters) – British banks need to prepare
for the risk of financial market turmoil when central banks end
unconventional monetary policy such as asset purchases, the Bank
of England said on Thursday.

Don Kohn, a former vice-chairman of the U.S. Federal Reserve
who now serves on the BoE’s main risk watchdog, told British
banks to guard against the risk of defaults, sharp rises in
market interest rates and illiquid assets as monetary policy
returns to normal after the financial crisis.

Sep 10, 2014

London’s Royal Opera targets youngest-ever audience

LONDON, Sept 11 (Reuters) – Britain’s Royal Opera House will
open its doors to children as young as two when its new season
starts on Thursday, as the 282-year-old institution seeks a new
generation of music-lovers.

Alongside staples such as Puccini’s “La Boheme”, the Royal
Opera’s 2014/15 season will also see more toddler-friendly new
work such as “Dot, Squiggle and Rest” – a performance aimed at
those aged between two and five.

Sep 10, 2014

Independent Scotland might need big currency reserves: Bank of England

LONDON (Reuters) – An independent Scotland would need big stockpiles of sterling if the country adopted the pound without an agreement with the rest of the United Kingdom, Bank of England Governor Mark Carney said on Wednesday.

Scotland’s future currency arrangements are a disputed topic in the run-up to next week’s referendum over whether to dissolve the 307-year-old union with the rest of the United Kingdom.

Sep 2, 2014

Analysis – In countdown to UK election, rate hike moves to centre stage

LONDON (Reuters) – Britain’s politicians and central bankers are watching one another even more closely than usual as the timing of a national election and a headline-making interest rate rise look set to converge.

With parliament and the Bank of England returning to work after the summer, the approach of the vote on May 7, 2015 is likely to be a key factor in the BoE’s thinking on when to raise interest rates for the first time since the financial crisis.

Sep 2, 2014

In countdown to UK election, rate hike moves to center stage

LONDON (Reuters) – Britain’s politicians and central bankers are watching one another even more closely than usual as the timing of a national election and a headline-making interest rate rise look set to converge.

With parliament and the Bank of England returning to work after the summer, the approach of the vote on May 7, 2015 is likely to be a key factor in the BoE’s thinking on when to raise interest rates for the first time since the financial crisis.

Aug 23, 2014

Bank of England deputy says weak UK pay growth could persist

LONDON (Reuters) – Britain’s slow wage growth is not certain to pick up any time soon, despite signs of skills shortages, Bank of England deputy governor Ben Broadbent said in a speech on Saturday.

The BoE has said it does not intend to raise interest rates until there is a clear prospect of stronger wage growth, and so far the picture remains murky, Broadbent told central bankers at an annual conference in Jackson Hole, Wyoming.

Aug 20, 2014

Bank of England splits over rate hike for first time in three years

LONDON (Reuters) – Bank of England policymakers have broken ranks over interest rates for the first time in three years, with two of them unexpectedly voting to tighten policy, in a move that revives speculation about a 2014 rate hike.

Martin Weale and Ian McCafferty – external members of the BoE’s nine-member Monetary Policy Committee – voted to raise interest rates to 0.75 percent from 0.5 percent, according to minutes of the MPC’s Aug. 6-7 meeting released on Wednesday.

Aug 17, 2014

No guarantee Bank of England can pull off plan for gradual rate rises

LONDON (Reuters) – The Bank of England is hoping it can gently wean Britain’s economy off record-low borrowing costs, but its plan for “gradual and limited” rises in interest rates might prove harder to pull off than investors expect.

So far, financial markets agree with BoE Governor Mark Carney’s reassurances that a return to more normal-looking monetary policy will probably not be a painful one.

Aug 14, 2014

Bank of England focuses on weak wages, rate rise lower on agenda

LONDON (Reuters) – The Bank of England dented expectations of a first interest rate hike this year, slashing its forecast for wage growth and saying higher borrowing costs hinged largely on an improved outlook for pay.

Sterling slumped to a 10-week low against the dollar and bond prices rose as traders saw little prospect of a rate rise before 2015, something BoE Governor Mark Carney had urged them to consider as a possibility just two months ago.

    • 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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