Silver as an investment

Category Archives: Monetary Policy Committee

BoE Deputy Governor Gives Crazy Speech Warning Markets Have Underestimated Rate Rises

On 2 November 2017, the Bank of England raised rates for the first time in a decade and Sterling’s initial rise was promptly sold off by forex traders as we discussed. The 7-2 vote by the Monetary Policy Committee was not the unanimous decision some had expected, while Cunliffe and Ramsden saw insufficient evidence that […]

BoE Expected To Vote 6-3 For Rate Increase And Signal Markets Underpricing Future Hikes

The last time the Bank of England raised rates was July 2007, when rates increased to 5.75%. Credit markets began to dislocate a month later (when LIBOR diverged from Fed Funds), equity markets peaked three months after the increase and things eventually got much worse. So, the track record is not auspicious, but the alleged […]

Pound Spikes As BOE “Hawkish” Vote Surprises Traders

The pound sharply reversed overnight losses (the result of weaker than expected UK retail sales 0.90% Y/Y, exp. 1.7%) rising as much as 0.3% to 1.2794 after the BOE announced it kept rates at 0.25%, however the hawkish surprise was the 5-3 vote, far closer than the 7-1 expected, as two more MPC members , […]

BOE Keeps Rate At 0.25%, Warns Rates May Rise Faster In Case Of “Smooth” Brexit

Just as consensus had expected, the BOE kept its interest rate at 0.25% after a 7-1 vote; in a unaimous vote it also kept its corporate and government bond purchase programs unchanged at GBP10 and GBP435 BN respectively. The biggest highlight in the statement was the BOE’s note that monetary policy may need to be […]

The Bank of England has just crossed the line into straight government financing

telegraph.co.uk / By Jeremy Warner / November 9, 2012 So now we know why the Bank of England’s Monetary Policy Committee called a halt to more Quantitative Easing this week – it’s because the Chancellor and the Governor of the Bank of England have concocted a backdoor way of doing the same thing. The latest […]