Beware: UK services PMI is no crystal ball for QE

March 5, 2013

Take with a pinch of salt economists who say Tuesday’s strong UK services PMI  might persuade the Bank of England to hold off from restarting its printing presses this week.

Still not thinking the very thinkable on Britain’s future

February 20, 2013

Mark these words. Not only is Britain going to avoid a triple-dip recession, but the economy won’t shrink again as far as the eye can see.

Super, or not so super, Thursday

By Mike Peacock
February 7, 2013

For those who thought the euro zone had lost the power to liven things up, today should make you think again.

Time already to switch off the sterling printing presses?

October 25, 2012

A clutch of top UK economic forecasters on Thursday swept under the rug predictions for another 50 billion pounds of gilt purchases they thought would take place starting just in a few weeks.

Could the Fed follow the Bank of England into ‘funding for lending’?

July 16, 2012

Federal Reserve Chairman Ben Bernanke “might have something up his sleeve next week” when he delivers his semi-annual monetary policy report to Congress: he could hint at a “funding for lending” program similar to what the Bank of England announced last month, according to one long-time Fed watcher.

Will ECB come to post-summit party?

By Mike Peacock
July 5, 2012

Bit of a day coming up with the European Central Bank topping the bill. A quarter-point interest rate cut is widely priced in and the bank may also lower its deposit rate to try and encourage the banks that dump up to 800 billion euros back in its coffers every night to invest it in the real economy or even Italian and Spanish government bonds.

BoEasing

June 22, 2012

The Bank of England is finally catching a break. With Britain’s economy officially in recession, the BoE had been constrained from further monetary easing by a stubbornly high inflation rate. But as the global economy stumbles and Europe’s crisis rages unabated, UK price pressures may be giving way.

Battening down the hatches

By Mike Peacock
June 15, 2012

There’s a high degree of battening down the hatches going on before the Greek election by policymakers and market in case a hurricane results.

Forecasting gymnastics on the BoE’s printing presses

June 7, 2012

The fluctuating fortunes of the British economy in the last year have left forecasters in a fix, unable to make up their minds how much longer the Bank of England’s money printing presses need to roll on.

Central bank balance sheets: Battle of the bulge

April 12, 2012

Central banks across the industrialized world responded aggressively to the global financial crisis that began in mid-2007 and in many ways remains with us today. Now, faced with sluggish recoveries, policymakers are reticent to embark on further unconventional monetary easing, fearing both internal criticism and political blowback. They are being forced to rely more on verbal guidance than actual stimulus to prevent markets from pricing in higher rates.