German Chancellor Angela Merkel’s choice of coalition partner will play a key role in deciding how far the foreign-exchange market is burdened by a proposed financial-transactions tax in 11 European Union states.
The U.S. federal government’s partial shutdown may increase demand for the nation’s bonds if investors seek sanctuary from any volatility it causes in markets, said former Bank of England policy maker Charles Goodhart.
Former Bank of England policy maker Charles Goodhart said U.K. finance minister George Osborne may struggle to find a successor for central bank Governor Mervyn King untainted by the financial crisis and banking scandals.
U.K. unemployment will hit Mark Carney’s 7 percent threshold faster than the Bank of England forecasts, prompting policy makers to assess whether they need to raise their benchmark interest rate, economists said.
The Bank of England should expand its toolkit to include interest-rate cuts on reserves and consider steps to aid banks such as buying their bonds or injecting equity into them, said former policy maker Charles Goodhart.