Rate watchers take a hike
The British Chambers of Commerce thinks we will see UK GDP return to pre-2008 financial crisis levels in Q2; good news if its true, though investors are still sweating on guidance from the Bank of England.
The British Chambers of Commerce thinks we will see UK GDP return to pre-2008 financial crisis levels in Q2; good news if its true, though investors are still sweating on guidance from the Bank of England.
Despite speculation that interest rates will rise, RLAM does not expect rates to rocket this year.
The Bank rate was dropped to 0.5% five years ago as a rescue operation - it now seems normal
The Bank of England has suspended a staff member as part of an internal review into allegations that officials condoned or were informed of manipulation in the foreign exchange market.
Contrary to popular opinion, forward guidance was not a promise and was only ever intended as an expectations-management tool to ease financial conditions when slack in the economy was judged too great.
A change in forward guidance blurs policy measures in the Inflation Report released by the Bank of England today.
UK base rates are being tipped to rise next year but with an election due in 2015 will the government put pressure on the Bank of England to raise rates early?
Inflation has hit the Bank of Englands target figure of 2% for the first time since 2009 as figures from the Office of National Statistics show the consumer prices index rose by 2% over the year to December.
It appears increasingly likely that 2013 marked the start of a synchronised recovery in the advanced economies, so is it now time for the Bank of England to consider hiking the base rate?
With tapering one of the most overused financial phrases of 2013, we look for forward guidance to be the dominant phrase for 2014.
Shares in widely-owned UK housebuilders have been hit after the Bank of England initiated moves to scale back on its Funding for Lending Scheme (FLS) for mortgages.
Concern over Mark Carney’s use of forward guidance leading to interest rates rising as early as next year should not hide the fact that the UK economy is growing which is surely what everyone wants.