No Evergrande fallout in Britain
Bank of England Governor Andrew Bailey said that resolving Chinese property developer Evergrande Group’s struggle with $300 billion in liabilities has been fairly protracted. But did not threaten financial stability in Britain. China was clearly trying to reduce its reliance on the property sector for growth. Also, Bailey told parliament’s Treasury Committee that the BoE was…
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British banks lift FTSE 100 after BoE raises rate
Shares in British banks rallied, lifting the blue-chip FTSE 100. This is after the Bank of England stunned investors with an interest rate hike. This is the world’s first major central bank to do so since the pandemic hit the global economy last year. The FTSE 100 gained 1.3%, breaking a six-day slump, while the banks index jumped 3.7% after the…
BoE becomes first major central bank to raise rates since the pandemic
The Bank of England became the world’s first major central bank. They have raised the interest rates since the pandemic hammered the global economy. Also, they warned inflation was likely to hit 6% in April. The BoE said that it had to act now. This is even as the Omicron coronavirus variant sweeps Britain. Because…
BoE chief economist says UK inflation could top 5%
The Bank of England’s new chief economist, Huw Pill, said that inflation in Britain could surpass a 5%. The Financial Times reported this news. Pill told the newspaper that the decision facing the Monetary Policy Committee was finely balanced. He added that he would not be shocked. They should see an inflation print close to or above…
BoE ends closed door policymaker briefings with banks
The Bank of England will no longer hold off-the-record briefings between policymakers and individual private sector firms. This is because of the scrutiny over the links between central banks and finance grows. This move is a permanent step that aimed at improving the transparency of the BoE’s market intelligence gathering operations. Another step is remembered in lifting the…
BoE says that new rules needed to cover risks from cloud computing
New rules will be needed to deal with operational risks from banks relying on outsourced ‘cloud’ computing from Amazon, Google, Microsoft etc., The Bank of England said that, this is for providing services to customers. The BoE’s Financial Policy Committee said in a statement that the regulated firms will continue to have primary responsibility for…
Trade finance firms advised by UK regulators
Britain’s financial regulators said that trade finance firms must do more to identify potentially suspicious activities. This can be done by undertaking additional risk assessments. Several high-profile failures of commodity and trade finance firms, took place in the past 18 months. The Bank of England and Financial Conduct Authority reported this in a letter to the chief…
BoE policymakers split evenly last month
Bank of England policymakers split evenly last month. This is between those who felt the minimum conditions for considering an interest rate hike and those who thought the recovery was not strong enough. These were stated by the BoE Governor Andrew Bailey. He told to the members of the Treasury Committee in the lower house of…
BoE’s Broadbent sees reasons for inflation tide to ebb
Bank of England Deputy Governor Ben Broadbent said that a current spike in prices is unlikely to create longer-term inflation pressures but central bankers should keep a close eye on job market shortages after the coronavirus pandemic. Splits have emerged among top policymakers at the British central bank on the need to remove stimulus for…
Bank of England to crack down on secretive cloud computing services
The bank of England said that the cloud computing providers to the financial sector can be secretive, and regulators need to act to avoid banks’ reliance on a handful of outside firms becoming a threat to financial stability. Banks and other financial firms are outsourcing key services to cloud computing companies such as Amazon, Microsoft and…
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