Tag: quantitative easing

Factory gate inflation rises, driven by higher fuel costs

Factory gate inflation rises, driven by higher fuel costs

The Office for National Statistics (ONS) has today revealed UK producer output prices rose in September – driven by higher fuel and food costs. The increase will no doubt raise concern about whether consumer price inflation will slow next year as sharply as the Bank of England is forecasting. According to the ONS, output prices [...]

October 7, 2011 More
Britain in most serious financial crisis ever

Britain in most serious financial crisis ever

Bank of England Governor, Mervyn King, believes Britain is in the midst of the “most serious financial crisis ever”. The Governor was speaking after the central bank’s Monetary Policy Committee (MPC) elected to keep interest rates on hold at the historically low level of 0.5%. Interest rates have now been at this low level since [...]

UK interest rates on hold but central bank announces QE boost

UK interest rates on hold but central bank announces QE boost

The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 – when the economy was in the midst of recession. Recent figures show the economy [...]

October 6, 2011 More
Bank minutes suggest further round of QE

Bank minutes suggest further round of QE

Minutes of the Bank of England’s September 7-8 meeting have been released today and have revealed all nine members of the Monetary Policy Committee (MPC) voted to keep interest rates at the historic low of 0.5%. This was the second consecutive month that the Committee voted unanimously to keep rates at the record low after [...]

September 21, 2011 | 0 Comments More
UK interest rates remain on hold

UK interest rates remain on hold

The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 – when the economy was in the midst of recession. Recent figures show the economy [...]

September 8, 2011 | 0 Comments More
NIESR: UK economic recovery to remain sluggish

NIESR: UK economic recovery to remain sluggish

Recovery of the UK economy is to remain sluggish, with GDP slowing to 0.2% in the June to August period, the National Institute of Economic and Social Research (NIESR) predicts. This compares with a 0.6% rate in the three months to July. The influential think tank believes if the weakness continues, the Bank of England [...]

| 0 Comments More
UK interest rates expected to remain on hold

UK interest rates expected to remain on hold

The Bank of England’s Monetary Policy Committee (MPC) commenced its two-day rate-setting meeting yesterday and interest rates are expected to remain on hold at the record low of 0.5% – where they have been since March 2009. The bank is presented with a dilemma as it comes under pressure to raise interest rates to combat [...]

Weak UK factory output suggests poor start to Q3

Weak UK factory output suggests poor start to Q3

The Office for National Statistics (ONS) has today revealed UK factory output shrank by 0.2% in July after a flat reading the previous month. The reading was worse than economists had expected and confirm weak prospects for the economy after the figures suggest a poor start to the third quarter. The fall was attributed to [...]

September 7, 2011 | 0 Comments More
UK manufacturing activity hits 26-month low

UK manufacturing activity hits 26-month low

The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) has today revealed UK manufacturing activity contracted at the fastest pace in more than two years in August. The closely-watched CIPS/Markit manufacturing PMI fell to 49.0 last month from an upwardly revised 49.4 in July. The latest figure means the index remains [...]

September 1, 2011 | 0 Comments More
BCC revises UK economic growth forecast

BCC revises UK economic growth forecast

The British Chambers of Commerce (BCC) has today revised its growth prospects for the UK economy. The lobby group is now forecasting growth of just 1.1% this year, down from its 1.3% forecast in June and much lower than the 1.9% it estimated at the start of the year. Meanwhile, it is expecting growth of [...]

UK trade deficit widens in June

UK trade deficit widens in June

The Office for National Statistics (ONS) has today revealed the UK trade gap widened to £8.8 billion in June – the biggest deficit since December 2010 and higher than expectations of £8.1 billion. The figures come on the same day the ONS revealed UK factory output fell by 0.4% in June after rising by 1.8% [...]

August 9, 2011 | 0 Comments More
Base rate held at 0.5%

Base rate held at 0.5%

The Bank of England’s Monetary Policy Committee (MPC) has opted to keep the base rate at 0.5% in August, as widely expected. The rate has remained at its historic low for well over two years and earlier predictions of a rise this autumn lost credibility once UK economic growth slowed to 0.2%, in the second [...]

August 4, 2011 | 0 Comments More
UK interest rates to remain on hold today

UK interest rates to remain on hold today

The Bank of England’s Monetary Policy Committee (MPC) commenced its two-day rate-setting meeting yesterday and interest rates are expected to remain on hold at the record low of 0.5% – where they have been since March 2009. The bank is presented with a dilemma as it comes under pressure to raise interest rates to combat [...]

IMF provides assessment for UK economy

IMF provides assessment for UK economy

In its latest assessment of the UK economy, the International Monetary Fund (IMF) has said growth will be around 1.5% this year. The Washington-based Fund warned that stubbornly high inflation continues to be a threat to the economy and is forecasting inflation to remain well above the 4% mark in 2011 before falling to 2% [...]

August 2, 2011 | 0 Comments More
Cable: economy needs quantitative easing boost

Cable: economy needs quantitative easing boost

The sluggish performance of the UK economy needs combating with another round of Quantitative Easing (QE), according to Business Secretary, Vince Cable. In an interview with The Financial Times, the minister identifies weak demand as a serious block to growth and urges the Bank of England to resume its QE programme, which was suspended early [...]

July 25, 2011 | 0 Comments More
Just two policy members vote for interest rate rise

Just two policy members vote for interest rate rise

Minutes of the Bank of England’s June 8-9 meeting have been released today and have revealed the Monetary Policy Committee (MPC) voted 7-2 to lift interest rates and 8-1 to restart the Bank’s quantitative easing (QE) scheme. Adam Posen, again, called for an injection of £50 billion via the QE scheme to boost the economy. [...]

June 22, 2011 | 0 Comments More
UK interest rates remain on hold

UK interest rates remain on hold

The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 – when the economy was in the midst of recession. Recent figures show the economy [...]

June 9, 2011 | 0 Comments More
Policymaker against lifting interest rates

Policymaker against lifting interest rates

Bank of England policymaker Adam Posen today said the central bank is right not to have raised interest rates, despite stubbornly high inflation. For several months, three of Monetary Policy Committee (MPC) members have voted for interest rates to be lifted after inflation reached a 2½- year high last month of 4.5% – more than [...]

May 27, 2011 | 0 Comments More
Three policy members again vote for interest rate rise

Three policy members again vote for interest rate rise

Minutes of the Bank of England’s May 4-5 meeting have been released today and have revealed the Monetary Policy Committee (MPC) again voted 6-3 to lift interest rates and 8-1 to restart the Bank’s quantitative easing (QE) scheme. Adam Posen, again, called for an injection of £50 billion via the QE scheme to boost the [...]

May 18, 2011 | 0 Comments More
Base rate held at 0.5%

Base rate held at 0.5%

The Bank of England’s Monetary Policy Committee has voted to maintain the base rate at 0.5% in May, as widely expected. The Bank’s quantitative easing (asset purchase) programme will also be maintained at its current level of £200 billion. The base rate has remained unchanged since March 2009, despite inflation running at 4%, double the [...]

May 5, 2011 | 0 Comments More