Bank of England policy makers extended unprecedented stimulus into a sixth year today as they seek to ensure the economy fully recovers from the damage wrought by the financial crisis.
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.
U.K. unemployment unexpectedly rose in the fourth quarter, reinforcing the case for the Bank of England to keep its key interest rate at a record low.
Bank of England Governor Mark Carney’s remolding of forward guidance left one element intact: market disbelief.
Investors who’ve driven 10-year gilt yields higher ever since Mark Carney joined the Bank of England now have the governor’s blessing.
Britain lost its top credit rating by Moody’s Investors Service, which cited weakness in the nation’s growth outlook and challenges to the government’s fiscal consolidation program.
The Bank of England will leave its benchmark interest rate unchanged at a record low in the coming week as policy makers hold off tackling inflation on concerns about the strength of the recovery.
U.K. retail sales rose in November, led by clothes as colder weather boosted demand for winter wear.
Bank of England Governor Mervyn King will today assess if the economy’s return to growth is convincing enough for him to end a push for more stimulus after an unprecedented run of three vote defeats.
U.K. services growth maintained its pace of expansion in September, capping the best quarter for the industry in 16 years with an increase in confidence and hiring.
"The economy is in a sweet spot for now."
- David Tinsley on Mar 06, 2014
Tinsley Says Portugal Yields are ‘Unsustainable’ March 23