Martin Weale News
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The pound fell against the dollar, extending a second weekly decline, as speculation the Federal Reserve is moving closer to ending stimulus boosted demand for the U.S. currency.
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Bank of England policy maker Martin Weale said the risk that adding stimulus will fuel inflation expectations limits the bank’s room to aid growth.
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Bank of England Governor-designate Mark Carney’s signature stimulus policy is running into opposition from current and former U.K. central bankers.
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Mark Carney, who becomes Bank of England governor later this year after leaving Canada, said offering future policy guidance can help central banks respond to economic shocks or financial imbalances, a view that may be disputed by his future colleagues.
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Bank of England policy maker Martin Weale said there’s a risk the U.K. fell into another recession in the first quarter, and signaled easing inflation pressures may reduce the barrier to more stimulus.
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Bank of England policy maker Martin Weale comments on inflation expectations, the case for more stimulus, the pound, and on whether the economy will contract in the first quarter.
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The pound rose against the dollar after U.S. data on leading economic indicators and Philadelphia- area manufacturing trailed estimates.
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U.K. money markets are indicating Bank of England policy makers will step up efforts to stimulate growth by buying another 80 billion pounds ($122 billion) of bonds, according to JPMorgan Chase & Co.
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The U.K. economy probably avoided an unprecedented triple-dip recession, providing relief to a Conservative-led government under attack for putting austerity before growth.
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Chancellor of the Exchequer George Osborne intends to unveil the second phase of a plan to increase loans for small companies and consumers because the U.K. economy remains weak, said a person with knowledge of the plan.
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