Bank of England

The latest remarks and commentary suggest the Monetary Policy Committee at the Bank of England (BoE) is only one inflation number or employment report away from a step change in the pace at which Bank Rate is being lifted, and that any such step change could come as soon as the August policy decision. 

The Bank of England's Chief Economist says he stands ready to vote for a faster rate of interest rate hikes, should he see further signs inflation is becoming embedded in the UK.

The arrival of Nadhim Zahawi at the Treasury could herald greater pay hikes for public sector workers, increasingly embedded inflation expectations and more forceful interest rate hikes from the Bank of England.

The latest Forum on Central Banking in Sintra, Portugal, offered insight this week into the thinking of the European Central Bank (ECB), Bank of England (BoE) and Federal Reserve (Fed) while also providing clues about the things that will matter for their interest rate policies in the months ahead. 

Pound Sterling underperformed many major counterparts during the first half of the year overall and these losses may be a symptom of underperformance by the UK economy, according to Bank of England Governor (BoE) Andrew Bailey.  

The Bank of England's basic interest rate should be set as high as 10% given the scale of UK inflation, according to a major insurer.

Goldman Sachs, Deutsche Bank raise Bank Rate forecasts, but NatWest Markets say they are misreading the Bank of England's guidance.

Bank of England Chief Economist Huw Pill becomes the second member of the Monetary Policy Committee to mention the value of Pound Sterling when fighting inflation.

The Bank of England's Catherine Mann says the British Pound is at risk of falling further and pushing UK inflation even higher unless a more activist approach to interest rate management is adopted.

Fears of a 1970's-style general strike are rising and if the government and employers eventually yield then the public sector could see a major wage impulse over coming months.

The Bank of England (BoE) raised its interest rate again this week and gave new guidance that appears to leave everything rested on economic data emerging from the UK in the months ahead, energy prices and the response of companies and households to October’s uplift in the ‘energy price cap.’ 

UK-based lender Barclays have raised their forecast profile for the Bank of England's key interest rate while warning a 50bp hike in August is now likely.

GBP is proving to be a slippery customer in the wake of the Bank of England's decision to raise interest rates again, initially falling on the 25 basis point hike announcement and then rising sharply.

The Pound to Euro rate enters the new week with its back against the ropes and the outlook for it hinged upon how the European Central Bank’s (ECB) handles its besiegement at the hands of hawkish financial markets this Thursday.

The Bank of England (BoE) could well need to lift interest rates further in the months ahead, a member of the Monetary Policy Committee has said, in order to ensure that a near double-digit inflation rate eventually returns to the coveted target of two percent over the medium-term. 

The Bank of England interest rate outlook is poorly understood within and around the markets, which is one reason why Pound Sterling has been the subject of increasingly bearish analyst commentary this week, although Pound Sterling Live has no such difficulty understanding BoE communications.

"We think that recent events have demonstrated that the BoE’s overly complex framework – designed during an era of low and stable inflation – is not fit".

The Deputy Governor of the Bank of England said further interest rate rises are needed as there is a risk the UK jobs market proves more resilient than the Bank's current expectations.

"To put it politely, the closer we look into the report, the greater our disappointment with the MPC."

"The relevant question is whether or not the BoE’s headline-grabbing projections are plausible... in our view, the answer is that they probably are not." - Berenberg.