Bank of england

So, the Bank of England didn’t do it: against market expectations that there would be a cut, the base rate has been kept at 0.5 per cent, where it’s been since March 2009. The pound shot up by 1.5¢ against the dollar on the news. #BankRate maintained at 0.5% and Asset Purchase Programme at £375bn. The MPC voted 8-1 on #BankRate and unanimously on the APP. — Bank of England (@bankofengland) July 14, 2016 The Bank is keeping its powder dry and today’s hold doesn’t mean there isn’t a cut coming: The Monetary Policy Committee is meeting again in three weeks’ time when it will have new forecasts for the economy and more

A stable government, led by a good-looking modernising liberal. A free trade agreement that gives it unrestricted access to the largest economic bloc in the world. Rising prices and a return to growth. There must be times when the Governor of the Bank of England Mark Carney wishes he was still in charge of the relatively simple Canadian economy, and had never been tempted to try and steer the damp and grey island on the other side of the North Atlantic through a moment of national angst. There may be worse jobs in the world – replacing Chris Evans on Top Gear, perhaps, or joke-writer for Theresa May – but

Home The Bank of England arranged for banks to be able to borrow as much money as they needed around the date of the EU referendum, lest there should be a bank run. After saying in a speech that Britain’s long-term prospects could be ‘brighter’ outside the EU, John Longworth was suspended as director-general of the British Chamber of Commerce, from which he then resigned so that he could speak freely. Four arrests followed the explosion of a bomb in Belfast, which wounded a prison officer working at Maghaberry Prison near Lisburn in Co. Antrim. The law against smoking in public buildings does not apply to prisons in England and

The unemployment rate fell to 5.1 per cent in the three months to November, putting it at the lowest level since 2006 – and back to its average over the six years before the crisis. Back to what the Bank of England regards as the “equilibrium” rate. [datawrapper chart=”http://static.spectator.co.uk/DUFV6/index.html”] The other side of the coin is that pay growth is down too. Excluding bonuses it’s fallen to a sluggish 1.9 per cent year-on-year, around half its pre-crisis rate. Workers’ spending power is still growing – but that’s driven by low inflation. [datawrapper chart=”http://static.spectator.co.uk/u0fNr/index.html”] At the equilibrium unemployment rate, the Bank of England thinks a further fall in joblessness could drive up inflation

It’s just as well that Mark Carney is Bank of England governor: he’d have made a lousy forecaster. In August 2013 he said he’d raise interest rates when unemployment fell below 7 per cent, expecting that to take three years. It took five months. Then last summer,  Carney informed us that the decision on when to make the first rate hike ‘will likely come into sharper relief around the turn of this year’. The year has turned, but the interest rate hasn’t. So yet again, the expectation has been delayed. The below graph shows the story so far… And now? As Carney said in a speech at Queen Mary University of London: ‘In my view, the

When David Cameron said this week that he is worried his children would not be able to afford to buy their own homes, he struck on one of the greatest economic problems of his premiership. The old British promise is that if you work hard and make the right decisions, you can advance in life and own your own home. This is the ladder that most aspire to climb. But for an entire generation, even the hope of home ownership is slipping out of view. A huge number of young Britons cannot hope to have the kind of life their parents enjoyed. The Prime Minister must know he is on dangerous

‘Everyone remembers the names of Applegarth of Northern Rock and Goodwin of RBS, but history may judge the HBOS men to have been the worst of the lot,’ I wrote four years ago. Judgment has arrived at last in a Bank of England report on the 2008 HBOS collapse — plus a second report, by Andrew Green QC, on the adequacy of investigations by the now-defunct Financial Services Authority. The Bank does not go as far as I did with ‘worst of the lot’. But there’s a hint that way in deputy governor Andrew Bailey’s foreword, which calls this ‘a story of the failure of a bank that did not

Not that I was much of a boy racer, but the sexiest car I ever owned was a 1982 Volkswagen Scirocco with the lines of a paper dart and the cornering of a cheetah. I once drove it overnight from the City to Tuscany with a blind date who barely uttered a word, en route or afterwards. In an era when British factories could make nothing better than a laughable Allegro or a downmarket Escort, everyone coveted a German car — the top choice for twenty-somethings being the VW Golf convertible (Sciroccos were rarer) whose quality came as a revelation after years of broken fanbelts and burst radiators on unreliable