As Bank of England also votes to maintain at 0.1%
Consensus is the Bank of England will finally raise interest rates before the year is out after inflation hit a five-year high of 3% on Tuesday, but what happens next?
Sterling has fallen to its lowest point against the euro since December 2009 following the Bank of England’s (BoE) decision last week to keep rates unchanged.
Bank of England governor Mark Carney made reference to Karl Marx as he delivered a warning of a backlash against open markets, monetarism and globalisation.
ECB intervention has pushed European corporate bond yields down to unrealistic levels. It may therefore be a good idea to buy some sterling credit, regardless of how the Brexit saga will play out.
A vote to leave the European Union would most likely result in a material slowing of growth and a notable rise in inflation, the Bank of England said on Thursday.
Thanks to the extensive forward guidance of the world’s major central banks, an interest rate hike by either the Fed or the Bank of England would not take investors by surprise. However, short-term consequences could still be grave, Bank of England Governor Mark Carney has reportedly warned.
The IMF yesterday warned that a rise in interest rates by the Federal Reserve could lead to a new crisis, with a spike in bond yields and emerging market economies particularly badly hit. Most estimates of when the Fed will begin rate hiking, or ‘normalisation’ as it is often called, range from as early as […]
One of the big macro themes for 2015 was thought to be divergence in the central banking policies of different parts of the world.