Bank of England Governor Mervyn King lost his final monetary policy vote this month as the majority of officials blocked his bid for more stimulus and said Britain’s economic recovery was taking hold.
U.K. home sellers raised asking prices for a sixth consecutive month, pushing average values above 250,000 pounds ($392,000) for the first time.
Incoming Bank of England Governor Mark Carney will get an early chance to overhaul management of the U.K. central bank after Paul Tucker said he will step down as deputy governor.
U.K. jobless claims fell more than economists forecast in May and a wider measure of unemployment also declined, providing further evidence that an economic recovery is under way.
Bank of England Markets Director Paul Fisher said policy makers must continue to provide support to the British economy as companies and consumers reduce debts and rebuild confidence.
Banco Santander SA and Royal Bank of Scotland Group Plc led a drop in U.K. lending in the first quarter as overall credit declined, the Bank of England said.
In the worst month for fixed-income assets in almost a decade, U.K. government bonds suffered more than most.
The pound declined for a fourth week against the euro as an improvement in German business confidence and speculation the Bank of England will boost stimulus sapped demand for the U.K. currency.
The pound fell for a fourth week against the euro as reports showing retail sales unexpectedly declined in April and inflation slowed fueled speculation the Bank of England will expand monetary stimulus.
Bank of England Governor Mervyn King was defeated for a fourth month in his bid to expand stimulus as the majority of officials cautioned against the danger of stoking inflation expectations.
"I do have some concerns that the level of real house prices is still high."
- Paul Fisher on Jun 16, 2013