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News Tag: Bank of England

December 18, 2012

Monthly incomes £22 lower in 2012

by Jan Harris
Monthly incomes £22 lower in 2012
The average monthly income of UK households fell by £22 in real terms compared with last year, according to a survey carried out for the Bank of England (BoE) by NMG Consulting. People on lower incomes have seen their income eroded more than higher earners and households still have high levels of debt the BoE reported. The survey, which was published by ...




December 13, 2012

Chancellor open-minded about ending inflation target

by Jan Harris
Chancellor open-minded about ending inflation target
Chancellor George Osborne has welcomed remarks made by the incoming Governor of the Bank of England about scrapping the inflation target to focus on gross domestic product (GDP). Such a change in strategy would require the Bank of England to introduce new measure to stimulate the economy, even if this caused inflation to rise. Mark Carney, who will take over from Sir ...




November 29, 2012

UK banks must raise more capital to cover risks

by Jan Harris
UK banks must raise more capital to cover risks
UK banks need to raise £60 billion to meet regulatory risk standards and to cover fines and compensations for mis-selling, the Bank of England says in its Financial Stability Report (FSR). Banks will need between £5 billion and £35 billion to meet regulator risk standards the report said, while a further £4 billion to £10 billion will be needed ...




November 27, 2012

Lloyds TSB writes to customers over Co-op move

by Jan Harris
Lloyds TSB writes to customers over move to Co-op
Lloyds TSB is writing to the 3.5 million customers affected by its sale of 632 branches to the Co-operative Bank. Customers will start receiving letters tomorrow, officially informing them that their accounts will be moved to a new TSB Bank which will be run by the Co-op. Lloyds Banking Group sold the branches under European rules, after it ...




November 14, 2012

Bank of England reduces UK growth forecast to 1%

by Jan Harris
Bank of England reduces UK growth forecast to 1%
The Bank of England has reduced its growth forecast to 1 per cent and does not expect inflation to fall to its 2 per cent target until the middle of next year. Presenting the Bank's quarterly Inflation Report, the governor of the Bank of England, Sir Mervyn King, said that economic recovery would be "slow and protracted". One ...




September 21, 2012

Bank of England optimistic for economic growth

by Jan Harris
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Sir Mervyn King, the governor of the Bank of England, expects the UK economy to return to growth in the next quarter, marking an end to the double-dip recession. Speaking on Channel 4 News, Sir Mervyn warned that recovery would be slow and said that the continuing crisis in the eurozone creates uncertainty for British business. "I think we’re beginning to see a few signs now ...




August 24, 2012

Rich have benefited most from quantitative easing

by Jan Harris
Rich have benefited most from quantitative easing
The Bank of England has admitted in a new report that the richest 5 per cent of UK households have benefitted the most from its quantitative easing (QE) programme. The Bank launched the programme in March 2009, in an effort to revive economic growth. In total it has bought £375bn of government bonds, known as gilts and this has boosted asset ...




August 8, 2012

Bank of England forecasts zero economic growth

by Jan Harris
Bank of England forecasts zero economic growth
The Bank of England does not expect the UK economy to grow at all this year according to its latest quarterly report. It had previously forecast growth of 2 per cent for 2012 but recent gloomy economic data has led to the growth forecast being revised downwards. The forecast for medium-term growth has also been cut, with the economy now expected ...




July 5, 2012

Bank expands quantitative easing to £375 billion

by Jan Harris
Bank expands quantitative easing to £375 billion
The Bank of England (BoE) is injecting another £50 billion into the economy, increasing its quantitative easing programme to £375 billion in total. The BoE decided to increase the bond buying programme due to slowing growth in export markets and the ongoing recession. The Bank has also decided that interest rate will remain at the historic low of 0.5 per cent, where ...




July 3, 2012

Bank of England reports increase in personal debt

by Jan Harris
Bank of England reports increase in personal debt
Bank of England figures for May show an increase in consumer debt, with new unsecured borrowing £732m higher than repayments. This represents a substantial increase from the average of the past six months of £403m. Borrowing through loans and overdrafts increased sharply in May according to the Bank’s figures. However credit card borrowing increased by just £70m. The Bank of England’s ...




June 27, 2012

Economic recovery could take until 2017

by Jan Harris
Economic recovery could take until 2017
Sir Mervyn King, the governor of the Bank of England, does not expect the UK economy to recover until 2017, three years later than his earlier estimate. The Governor made his gloomy prediction to MPs at a meeting of the Treasury Select Committee (TSC). “When this crisis began in 2007, most people did not believe we would still be here. “I don’t ...




June 19, 2012

Inflation falls to 2.8%

by Jan Harris
Inflation falls to 2.8%
Inflation fell to 2.8 per cent on the Consumer Prices Index in May, from 3 per cent in April, surprising economists who had not expected it to change. Inflation also fell on the Retail Prices Index, which includes housing costs, from 3.5 per cent in April to 3.1 per cent in June. Inflation is now at its lowest level for two ...




May 24, 2012

Bank of England may end free in-credit banking

by Jan Harris
Bank of England may end free in-credit banking
A director of the Bank of England has warned that official intervention could be considered to end the ‘dangerous myth of free in-credit banking’. Andrew Bailey has already spoken out against free banking in relation to the mis-selling of financial products. In a speech made available to media, he reiterated his concern, saying that it will be difficult for banking reforms ...




Bank of England votes against more economic stimulus

by Jan Harris
Bank of England votes against more economic stimulus
The Bank of England voted against a further round of quantitative easing, at its latest Monetary Policy Committee (MPC) meeting. Just one member, David Miles, voted for further asset purchase to encourage growth in the UK economy, while the other eight members voted to keep the Bank's quantitative easing programme steady at £325bn. The minutes of the meeting note that “for ...




May 10, 2012

BoE holds interest rates and stops quantitative easing

by Jan Harris
BoE holds interest rates and stops quantitative easing
The Bank of England is holding the base rate at 0.5 per cent and has decided not to extend its quantitative easing (QE) programme following a £50bn boost to the economy in February. The UK interest rate has now remained at 0.5 per cent for three years, despite high levels of inflation. Consumer Prices Index inflation currently stands at ...




March 26, 2012

Bank of England calls for culture change in banking

by Jan Harris
Bank of England calls for culture change in banking
Michael Cohrs, a member of the Bank of England’s new financial policy committee (FPC) has warned of the danger of another financial crisis unless the ‘toxic culture’ inside banks is eradicated. Changes should include a reform of banks’ bonus systems, he said. The FPC was established to regulate UK banks, but Mr Cohrs suggested that it should have greater power to ...




February 14, 2012

Inflation down to 3.6% in January

by Jan Harris
Inflation down to 3.6% in January
Inflation fell sharply in January to 3.6 per cent on the Consumer Prices Index (CPI), from 4.2 per cent in December, according to the latest official figures. Retail Prices Index (RPI) inflation, which includes housing costs such as mortgage interest and council tax, fell to 3.9 per cent from 4.8 per cent. Although CPI inflation has fallen for the last four ...




January 24, 2012

Britain’s national debt exceeds £1 trillion

by Jan Harris
Britain’s national debt exceeds £1 trillion
UK government debt rose to over £1 trillion for the first time in December, despite a fall in public sector borrowing. Excluding bank bailouts and other financial interventions, public sector borrowing fell £2.2 billion to £13.7 billion in December according to the latest figures from the Office for National Statistics. This was lower than City forecasts of £14.9 billion. However, ...




January 5, 2012

Personal loan rates on downward trend

by Jan Harris
Personal loan rates on downward trend
Marks & Spencer Money is offering borrowers a personal loan at a rate of just 6 per cent. This represents the lowest rate since 2008 when Moneyback Bank was offering 5.8 per cent, while just one year ago Tesco Bank offered the lowest loan rate, of 8.4 per cent. Marks & Spencer Money’s 6% deal is for personal, unsecured loans of ...




December 15, 2011

Brits losing faith in inflation strategy

by Jan Harris
Brits losing faith in inflation strategy
The Bank of England’s latest inflation attitudes survey suggests that fewer people believe inflation is being controlled effectively with interest rates. In August, when the survey was last carried out, the proportion satisfied that the Bank was doing its job to set interest rates to control inflation, versus those dissatisfied, was 16 per cent, but this figure fell to just 9 ...