Tag: BoE

BoE issues gloomy quarterly inflation report

BoE issues gloomy quarterly inflation report

The Bank of England has released its latest quarterly inflation report, which warned that the UK recession is worse than expected but economic recovery prospects are improving. In addition the Bank forecast that the consumer price index inflation benchmark is to stay well below its 2% target for the next two years – inflation is [...]

Mortgage rates at five-year low as interest rates held

Mortgage rates at five-year low as interest rates held

The Bank of England’s sixth consecutive interest rate cut is finally having an impact on the housing market as interest rates on the nation’s five most popular mortgage deals are at their lowest for the last year and a half. The Bank of England’s latest figures released yesterday shows that the average two-year fixed-rate deal [...]

BoE announce liquidity measures

BoE announce liquidity measures

The Bank of England (BoE) is attempting to thaw the frozen credit markets by introducing permanent liquidity schemes. Some aspects of the Special Liquidity Scheme (which allows banks to swap illiquid assets such as mortgage-backed securities for highly liquid assets such as Treasury bills) is to be a permanent fixture of the money markets. Furthermore, [...]

BoE under pressure to make aggressive interest rate cuts

BoE under pressure to make aggressive interest rate cuts

Mervyn King, the Bank of England’s Governor, is under severe pressure to slash interest rates this week to fight off a recession. The Monetary Policy Committee (MPC) is to meet on Wednesday with an announcement on Thursday lunchtime, and many economists believe that a quarter point reduction is inevitable. Rates have remained the same since [...]

BoE report reveals lending to reduce even further

BoE report reveals lending to reduce even further

The Bank of England’s quarterly credit conditions report, published today, has added to the doom and gloom surrounding the British economy, after it revealed that Britain’s banks and building societies are set to make even more cutbacks in their lending. The report, which surveys lenders about the previous quarter and their predictions for the next [...]

BoE Governor calls for savers’ guarantees

BoE Governor calls for savers’ guarantees

The Bank of England’s Governor, Mervyn King, has said today that banks should put billions of pounds into a fund over the next 10 years to compensate customers in the event of another Northern Rock collapse. Mr King was speaking members of the House of Commons Treasury Select Committee on the issue of banking reform, [...]

Sharp fall in manufacturing output fuels recession fears

Sharp fall in manufacturing output fuels recession fears

Official data has revealed that manufacturing production fell in May triggering fears that the UK economy is heading towards a recession. The figures were much worse than anticipated as output fell by 0.5% during the month, while the wider measure of industrial production, including energy and water output, dropped 0.8%. The latest fall in manufacturing [...]

Northern Rock loan repayments could be delayed by house price falls

Northern Rock loan repayments could be delayed by house price falls

Northern Rock chairman, Ron Sandler, has warned that sharp house price falls could delay its plans to repay the billions of pounds it owes the Bank of England. Mr Sandler said if house prices were to decline 5%, 10% or 15%, that would seriously impede fulfilling the plan and added I can’t give you a [...]

Economy set to be even weaker in 2009, warns BCC

Economy set to be even weaker in 2009, warns BCC

The British Chambers of Commerce (BCC) has warned that the UK economy set to be even weaker in 2009. The BCC said the current economic slowdown will be more prolonged than previously anticipated. It warned that businesses should prepare themselves for a long slog before the credit crunch is over. The organisation added that the [...]