The Bank of England’s Andy Haldane was wrong to focus on his profession’s inability to predict the 2008 financial crash as all economic forecasting is ultimately “doomed to failure”, according to Morningstar’s chief investment officer Dan Kemp.
The effectiveness of monetary policy implemented in the aftermath of the 2008 financial crash will be the focus of newly-launched government inquiry.
The stage is set for a further rate cut by the Bank of England next year as growth slows, economists have said in the aftermath of Wednesday’s decision to hold the rates at 0.25%.
A few years ago, it was de rigueur to talk up a supposed decoupling of developed and emerging markets, but for central banks there is now a more disconcerting separation at play.
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.
Shares in RBS had fallen 5% top 187.2p by mid-morning on Wednesday after the bank emerged as the biggest failure in the Bank of England’s latest stress test scenario.
The Bank of England is likely to cut rates yet again in 2017 despite the return of significant inflation to the economy, according to UBS Wealth Management.
The Office for National Statistics has reported inflation dropped to 0.9% in October, slightly undershooting consensus forecasts of 1.1%.
The Bank of England has moved to play down the prospects of a further cut to the current UK base rate of 0.25%.
The Bank of England’s Monetary Policy Committee unanimously voted to hold rates at 0.25% Thursday, but economists expect another rate cut will materialise in November.
Deputy governor for markets and banking at the Bank of England, Minouche Shafik, is to leave the bank two years into a five year term for a position as head of the London School of Economics.
A month after the Bank of England’s stimulus announcement, PIMCO UK credit manager Ketish Pothalingam said there is still untapped value in sterling credit, which he bets will weather a 12-month slowdown in United Kingdom growth.
