The UK Treasury has appointed Jonathan Haskel, a professor of economics at Imperial College Business School, to the Bank of England's interest rate-setting Monetary Policy Committee (MPC). Haskel is to replace Ian McCafferty, who will come to the end of his second term on 31 August. McCafferty was one of the more hawkish members of the MPC, and has voted to raise rates at the committee's last two meetings. As a new member, Haskel will be appointed for a three-year term. Out of the five people shortlisted for the MPC vacancy, the Bank of England – which has previously been criticised for a lack of diversity in its senior ranks, and currently has only one women sitting on the nine-strong MPC – ended up with the only man. Read more: Shadow MPC: Amid hesitantly positive data, Bank of England should hold fire A panel comprising Clare Lombardelli and Richard Hughes from the Treasury and Dame Kate Barker, an external member of the MPC from 2001 to 2010, interviewed a number of … [Read more...] about The Treasury has appointed Imperial professor Jonathan Haskel to the Bank of England’s rate-setting Monetary Policy Committee
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LONDON (Reuters) – The chief of Britain’s financial regulator Andrew Bailey on Thursday declined to comment as to whether he was interested in succeeding Mark Carney as the Bank of England governor, saying he had a big job to do already. Carney will step down in June 2019, three months after the country’s scheduled exit from the European Union, but Bailey, head of the Financial Conduct Authority (FCA), would not say if he was interested in replacing him. “I’ve got a very big job which I hugely enjoy,” he told BBC radio when asked about the BoE top job. Asked if he would also enjoy being Bank of England Governor, he said: “I’m not going to comment on that, because it’s not for me to say.” (Reporting by Alistair Smout; editing by Guy Faulconbridge) … [Read more...] about Does FCA’s Bailey want the Bank of England’s top job? No comment
Did the Bank of England make the right decision by holding interest rates? Sajiv Vaid, portfolio manager at Fidelity International, says YES. To be candid, we felt that raising interest rates any further would be a huge policy mistake at this stage. It appears that sense has prevailed with the Bank of England’s decision to keep rates on hold. We think the pause is appropriate, given domestic conditions and signs that the frothiness in global GDP may well have stalled, which should provide a supportive backdrop for UK fixed-income assets. With the economy growing below the Bank of England’s expectations, a rate rise would have dampened consumer sentiment, which is already showing increasing signs of fragility, as evidenced by recent retail sales and also housing data. The ongoing challenge for the Monetary Policy Committee continues to be its confidence in articulating the path and the timing of the next rate hike. While the initial reaction of the market is to virtually … [Read more...] about DEBATE: Did the Bank of England make the right decision by holding interest rates?
Jim Edwards, provided by Published 12:53 am, Thursday, May 10, 2018 Pantheon Macroeconomics The amount of new credit issued in the UK suddenly went sharply negative in Q1, Consumers also abruptly increased their repayments of loans. Together, the two spikes — one down, one upward — send a worrying signal that British consumers are afraid of what's ahead. It would therefore be surprising if the Bank of England raised interest rates today. The stakes couldn't be higher: The data suggest that consumers fear Prime Minister Theresa May won't get a Brexit trade deal that keeps Britain close to the EU. LONDON — The amount of new credit issued in the UK suddenly went sharply negative in Q1 2018, dipping to a level it has not seen in six years. LATEST BUSINESS VIDEOS Now Playing: Now Playing Booking.com Is An AirBnB Competitor, But Don't Call it A Clone Cheddar TV You Can Still Use Your Toys R Us Gift Cards at These Stores Buzz 60 What Makes … [Read more...] about The UK’s ‘credit impulse’ just went sharply negative, and that suggests the Bank of England will not raise interest rates today
caption Bank of England governor Mark Carney. source Reuters/Toby Melville The Bank of England is set to announce its latest interest rate decision at 12.00 p.m. BST (7.00 a.m. ET). Just a month ago a rate hike seemed a near certainty, but poor UK economic data has all but killed the chance of rates increasing. Last month inflation fell faster than the BoE had expected and the economy grew at its slowest annual rate in five years in early 2018. LONDON – The Bank of England will shortly announce its latest interest rate decision, with markets expecting the central bank to stay on hold for another month. Just a month ago a rate hike from 0.5% to 0.75% seemed a near certainty, but poor UK economic data in recent weeks, as well as a dovish speech from Governor Mark Carney, has dampened expectations for any movement in policy. Heavy snow slowed economic growth in much of Europe in March. Growth was … [Read more...] about Here comes the Bank of England …