After two years of major central banks raising interest rates, the weighted global policy rate stands at a restrictive 7.2%. But with disinflation having taken hold around the world, it is time for central banks to reduce these rates. Usually, the Federal Reserve would lead the way. But with private ... READ MORE >
Bank of England
Confusion has its cost: RSM UK Financial Conditions Index shows growing drag
The Bank of England announced on Wednesday that it would temporarily step in to purchase long-dated bonds to tamp down disorderly market conditions that have prevailed since the Truss government announced its plan to cut taxes. The £45 billion ($50 billion) plan comes on top of the government’s ... READ MORE >
Amid global economic turmoil, stress grips fixed-income markets
Regime change in the global financial markets and the international economy is in play. Investor and policy expectations around globalization, growth and liquidity are all rapidly changing as central banks lift interest rates to put inflation back in the box. It is highly likely that the American ... READ MORE >
RSM UK Financial Conditions Index: Holding steady
Financial conditions in the UK remain accommodative, signaling confidence that the policies of the monetary and fiscal authorities have created the framework for a sustained economic recovery. Ahead of the Bank of England’s critical decisions on policy normalization on Thursday, this should provide ... READ MORE >
Bank of England’s Monetary Policy Committee to focus on economic risk as energy prices surge
Rising energy prices will weigh on consumer spending and gross domestic product growth in the U.K. next year. At its meeting on Thursday, the Bank of England’s Monetary Policy Committee should be more concerned about the negative impact on the economic recovery from soaring energy prices than about the ... READ MORE >
RSM UK Financial Conditions Index: Gimme shelter
Financial conditions in the U.K. have settled into a groove that would be rivaled only by the late Charlie Watts. As a result of this stability, the RSM UK Financial Conditions Index in August moved to its highest level since 2014, reaching 1.1 standard deviations above levels of risk that are ... READ MORE >
Bank of England policy rate decision: reduced economic outlook, negative interest rate policy not imminent
Reduced growth amid a more optimistic outlook later this year is the primary takeaway from the February rate decision by the Bank of England Monetary Policy Committee. This implies a slower pace of growth near 5% in 2021 followed by a rapid rebound closer to 7% in 2022. Moreover, the central bank does not ... READ MORE >
Bank of England: Deteriorating economic outlook and negative interest rates
The Bank of England at its meeting on Thursday is expected to keep its policy matrix unchanged as it downgrades its economic outlook and publishes its view on the use of negative interest rates. We expect the central bank to keep its policy rate at 0.1% and the total asset purchase program -- an ... READ MORE >