The Bank of England kept its key interest rate at a record low today as policy makers try to gauge the amount of spare capacity in the economy.
Mark Carney picked a good time to implement sweeping changes at the Bank of England.
Mario Draghi can study an array of data this week to help him track his latest policy metric: economic slack.
Bank of England policy maker David Miles said the lingering impact of the financial crisis on investment decisions means policy makers may have to limit how high they increase their key interest rate in the coming years.
The U.K. economy probably has more spare capacity than the Bank of England’s main calculations show, policy maker David Miles said, highlighting a key area of divergence among officials.
Bank of England official David Miles said policy makers will only use interest rates as a last resort to cool Britain’s housing market if it begins to overheat.
Judging by the Bank of England’s minutes, officials had little to argue about this month on the biggest policy revamp since Mark Carney began forward guidance.
The following list comprises the most-read Bloomberg News reports from the past week.
Bank of England Governor Mark Carney’s overhaul of his forward-guidance policy is penalizing U.K. government bonds relative to their U.S. and European peers.
Bank of England policy maker David Miles said interest rates are not the best weapon against a buildup of risks in the housing market and should only be used when other tools have been exhausted.
"When interest rates do go up, it's more likely than not to be a very gradual series of increases."
- David Miles on Feb 26, 2014