Calculated Risk (Free subscription) | yesterday
From The Telegraph: Bank of England says financiers are fuelling an economic 'doom loop' On the eve of the G20 meeting of finance ministers in Scotland, Andy Haldane, the Bank's executive director for financial stability warned that the relationship between the state and banks represents a "doom loop" which will keep inflicting crises on the public unless arrested. The warning, which follows...
Foreign Exchange Outlook (Free subscription) | 06/11/2009
GBPEUR/GBPUSD The Pound rallied against the Dollar and the Euro yesterday, after the Bank of England raised its bond-purchasing program by just £25 billion, less than economists had predicted and for the third time since March. Policy makers are trying to cement the economic recovery, with the UK economy still languishing in the worst recession ever recorded. The nine-member monetary policy...
The Guardian (Free subscription) | 06/11/2009
For months, the UK economy has been in intensive care, with government ministers and central bankers trying every measure in the textbook – and a few that are not. Yet – as the grim economic statistics show – nothing has got the patient off life support, let alone out of the sickbed. Not the government's billions of extra spending, nor the devaluation-in-all-but-name of the pound....
The Independent (Free subscription) | 06/11/2009
Spooked. Though the Bank of England and its Governor, Mervyn King, would never use such indelicate language, it was not just the Hallowe'en experience that has them quaking. The Bank is spooked – shocked might be a better word – by the economy's continuing weakness.
The Independent (Free subscription) | 06/11/2009
A stark warning of the continuing weakness of the economy came yesterday as the Bank of England announced a further dramatic expansion in its programme of quantitative easing, injecting money directly into the economy – to reach a total £200bn in the next few months. The Bank said "the prospect is for a slow recovery". The Governor, Mervyn King, said in a letter to the Chancellor...
The Guardian (Free subscription) | 05/11/2009
Mervyn King resists call to pump £50bn into economy to reverse six quarters of falling output – and holds rates at 0.5% The Bank of England came under fire from the City and business after it slowed the rate of electronic money growth to boost Britain's moribund economy to £25bn over the next three months. Threadneedle Street signalled a halt to the emergency measure designed to...
Foreign Exchange Outlook (Free subscription) | 05/11/2009
GBPEUR/GBPUSD The Pound received an unexpected boost at midday today, as the Bank of England raised its bond-purchasing program by just £25 billion, the third increase since March. Policy makers are trying to cement the economic recovery, witht he UK economy still languishing in the worst recession on record. The nine-member monetary policy committee, led by the governor Mervyn King, took the...
The Guardian (Free subscription) | 05/11/2009
What do economists make of the MPC's decision to expand its QE programme and leave interest rates at a record low of 0.5%? The Bank of England's monetary policy committee decided today to pump another £25bn into the economy, taking its quantitative easing (QE) programme to £200bn. It also left interest rates unchanged at 0.5%, their lowest on record. Here is what City economists and other...
The Independent (Free subscription) | 05/11/2009
Though the Bank of England and its Governor, Mervyn King, would never use such language, they are spooked.
Law Blog - WSJ.com (Free subscription) | 05/11/2009
While the ECB is widely expected to keep its benchmark interest rate unchanged, Bank of England governor Mervyn King faces a tough call.
Mish's Global Economic Trend Analys (Free subscription) | 05/11/2009
It's no wonder that gold is soaring with the US, UK, and China all printing money like mad. Throw enough money around and gold is bound to rise regardless of anything else that might happen (all of it bad). Please consider the latest insanity in the UK: BOE May Expand Bond Plan as Officials ‘Throw Money’ at Economy . The Bank of England may increase its bond-purchase plan by 50 billion...
Steel Strip (Free subscription) | 05/11/2009
Britain’s manufacturing sector expanded unexpectedly last month and at the fastest rate in two years as the weak pound made exports cheaper and imports more expensive, according to new data. Barely a month after Mervyn King, the Governor of the Bank of England, said that weak sterling “will be helpful” in rebalancing Britain’s economy, the latest [...]
The Observer (Free subscription) | 05/11/2009
• Economists split over whether QE should be expanded • Interest rates likely to stay at record low of 0.5% The Bank of England today faces the difficult decision of whether to pump more money into the struggling UK economy by expanding its unprecedented £175bn quantitative easing programme . Many City economists expect the Bank's monetary policy committee to increase the QE programme...
Snuffysmith's Blog (Free subscription) | 04/11/2009
Trouble Ahead: Can the Right Seize the Banking Reform Issue in 2010? Eliot Spitzer explains how the White House defense of the status quo will give Republicans powerful ammunition in the 2010 elections. Few things are as potent in politics as calling for change at a moment of fundamental dissatisfaction with the status quo. Nobody should know this better than the current White House. Gauzy words describing...
Snuffysmith's Blog (Free subscription) | 04/11/2009
Too-Big-To-Fail: Regulatory Reforms of Systemically Important Institutions Although the G20 finance ministers pledged stronger prudential regulation and financial oversight of systemically important firms at their September meeting, there is no consensus yet among regulators, lawmakers and academics on how best to proceed. Nouriel Roubini noted recently that the problem of banks being too big to fail...
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