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.
The Bank of England has used its latest Inflation Report to soften its unemployment projections but has played down the move.
Not a bad first week in charge at the Bank of England for Mr Carney. Admittedly he is only a week in but he already looks like he has a calm authority about him and is happy to do things the way he wants them to be done which means doing things slightly differently to…
The pound fell a cent and a half against the dollar following the Bank of England’s announcement markets were wrong to assume interest rates would start rising soon.
So often mentioned with the prefix “incoming”, let’s hope Mark Carney doesn’t develop a complex about crash landing into the Bank of England when he arrives on 1 July.
