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"Some further increase in Bank Rate may turn out to be appropriate, but nothing is decided," Bailey added. Bailey said that the economy had developed largely as expected since the BoE raised rates on Feb. 2. "Inflation has been slightly weaker, and activity and wages slightly stronger, though I would emphasise 'slightly' in both cases," he said. Bailey also highlighted how the central bank shifted its language in February, when it said further tightening would be required if there was evidence of more persistent inflation pressures. But two MPC members - Swati Dhingra and Silvana Tenreyro - voted in February to pause the rate hikes.

LONDON, Feb 23 (Reuters) - Bank of England interest rate-setter Catherine Mann said on Thursday that it was too soon to say the risks posed by the surge in inflation last year had eased and that the central bank should continue to raise borrowing costs. The BoE raised interest rates to 4% earlier this month but signalled it was close to ending a run of increases which began in December 2021. She has previously argued in favour of raising borrowing costs sharply in the face of an inflation rate that remains above 10%, even though the BoE has forecast that it will fall sharply this year. Two other members of the Monetary Policy Committee - Swati Dhingra and Silvana Tenreyro - voted to pause the rate hikes at this month's meeting. Mann also said that she believed that in normal times, interest rate changes took their full effect faster than the 18-24 months which economists have previously estimated.

☆ Bank of England's Mann doubles down on backing for rate hikes
▼ + stars: | 2023-02-06 | by ( Gergely Szakacs | ) www.reuters.com time to read: +2 min

After hiking interest rates to 4% last week, the BoE's Monetary Policy Committee (MPC) signalled it was close to pausing a run of increases which began in December 2021. Mann, consistently the most hawkish member of the MPC, said the risk of under-tightening policy far outweighed the alternative. "In my view, a tighten-stop-tighten-loosen policy boogie looks too much like fine-tuning to be good monetary policy. "From a risk-management point of view, monetary policy has to lean against these upside biases since wage and price inflation are still so high," she said. At the other end of the MPC spectrum, Dhingra and Tenreyro say over-tightening risked sending Britain's economy into an unnecessarily severe downturn, with the full force of the BoE's rate hikes yet to feed through.

☆ Back-to-back California shootings reflect an American tragedy, not an ‘Asian issue,’ experts say
▼ + stars: | 2023-01-25 | by ( Kimmy Yam | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Mirna-Alsharif-Byline-Jm.Jpg | ) www.nbcnews.com time to read: +8 min

Gun violence isn’t innate in Asian culturesGun violence, experts note, is not inherent in the Asian diaspora's culture. So Ho condemned those attempting to paint the Asian American community with a broad brush due to the pair of tragedies. Gun control organizations haven’t invested enough time and resources in the Asian American community, Ramakrishnan said. And campaigns and parties have often targeted Asian American voters with a focus on education and affirmative action, he said. And Dhingra said he fears that, as more attacks occur in Asian American spaces, it could lead to more Asian Americans purchasing weapons for self-defense, leading to more firearms to be used and misused.

Although Britain saw the same easing of wholesale energy prices, UK industry - by stark contrast - continued to contract this month. More than two thirds of the 42 economists polled by Reuters this month expect another hefty 50 basis point rate rise to 4% next week, while their average 'terminal rate' forecast implies yet another quarter point rise to 4.25% after that. Despite economic funk, the implied peak BoE rate derived from money and swaps markets shows almost another full percentage point of hikes to 4.5% before the Bank calls it quits later this summer. Either way, the eventual outcome leaves the BoE and the pound in something of a half way house. Reuters Graphics Reuters GraphicsUK vs Euro zone economic surprise gapThe opinions expressed here are those of the author, a columnist for Reuters.

LONDON, Dec 16 (Reuters) - The Bank of England looks like it's being outed as the weakest link. The primary reason was that two of the nine-person MPC voted to end the Bank's rate rise campaign right away as the recession the Bank thinks is already underway will get entrenched next year. But with the median economist forecast for the Bank's terminal rate somewhere around 4.25%, markets still seem aggressively positioned for a hawkish surprise and the pound may be more vulnerable to that revision as the winter progresses. Significantly, the implied Fed terminal rate edged higher to 4.9% after its policy setpiece on Wednesday - even if is still below the 5.1% the Fed indicated. Reuters Graphics Reuters GraphicsReuters GraphicsReuters Graphics Reuters GraphicsThe opinions expressed here are those of the author, a columnist for Reuters.

☆ Bank of England raises rates to 3.5%, expects more rises to come
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +3 min

LONDON, Dec 15 (Reuters) - The Bank of England raised its key interest rate to 3.5% from 3% on Thursday, its ninth rate rise in a row as it tries to speed inflation's return to target after price growth hit a 41-year high in October. The BoE statement did not repeat unusual language from November when it said rates were unlikely to need to rise as far as markets expected. The European Central Bank is set to raise interest rates for the fourth time in a row on Thursday, although by less than at its last two meetings. Official figures on Wednesday showed consumer price inflation fell to 10.7% in November from 11.1% in October. That 0.4 percentage point fall in the annual rate was the largest since July 2021.

But only one policymaker, Catherine Mann, wanted to match November's bigger 0.75 percentage point increase - the BoE's largest in more than 30 years - and two MPC members voted to keep rates on hold. Sterling weakened against the U.S. dollar after the BoE's decision, falling to around $1.23, and it also declined against the euro. "While the 50-basis-point increase in the Bank rate was as expected, the extent of the divisions across the committee is an eye-opener," Philip Shaw, an economist with Investec, said. On Wednesday, the U.S. Federal Reserve also slowed the pace of its rate hikes while pointing to more tightening in 2023. That 0.4 percentage point fall in the annual rate was the largest since July 2021.

☆ Bank of England readies another rate hike even as recession hits
▼ + stars: | 2022-12-15 | by ( Andy Bruce | ) www.reuters.com time to read: +4 min

The Monetary Policy Committee (MPC) has faced both encouraging and worrying news on the economy since a majority voted in early November to raise rates by 0.75 percentage point, the biggest hike since 1989. A big majority of the 54 economists polled by Reuters last week predicted a 0.5 percentage point increase in Bank Rate, which would take it to a 14-year high of 3.5%. Investors mostly agree although financial markets put a roughly 25% chance of another 0.75 percentage point hike. The annual rate of consumer price inflation dropped to 10.7% in November from 11.1% in October, a lower rate than the BoE had pencilled in last month. "We think the Bank will opt for further hikes in the first half of 2023, until inflation shows less momentum."

☆ Bank of England to add 50 bps to Bank Rate on Dec. 15; peak at 4.25% in Q2: Reuters poll
▼ + stars: | 2022-12-08 | by ( Jonathan Cable | ) www.reuters.com time to read: +4 min

"We think it will be a 50 bp rise, taking Bank Rate to 3.50%, with risks weighted towards a larger 75 bp move, rather than a smaller 25 bp one." Only two economists expected a 75 bp increase next week compared to 13 of 56 in the Nov. 23 poll. The U.S. Federal Reserve is also expected to shift down to a 50 bp move this month after four consecutive 75 bp increases, a separate Reuters poll found. After next week's move, the BoE will add another 50 bps in the first quarter and 25 bps in the second, with medians showing Bank Rate peaking at 4.25% then. In last month's survey, Bank Rate was expected to peak at 4.25% next quarter and there was a big divide between economists in the latest survey as to when and where it would level out.

☆ Bank of England set to raise rates to 3.5% after inflation hits 41-year high
▼ + stars: | 2022-12-07 | by ( David Milliken | ) www.reuters.com time to read: +4 min

Financial markets currently price in a 78% chance that the BoE will raise rates by half a percentage point to 3.5% on Dec. 15, and a 22% chance of a rise to 3.75%. "The BoE has made it pretty clear that inflation is too high. With a range of views on the MPC about how near BoE rates are to a peak, a first-ever four-way vote split was possible, she added. Last month, seven MPC members voted to raise rates to 3%, but Silvana Tenreyro voted for a quarter-point rise to 2.5% and Swati Dhingra for 2.75%. Financial markets currently see BoE rates peaking at 4.75% by the middle of next year, while HSBC expects the BoE to stop at 3.75% in February and Investec predicts a peak of 4%.

By contrast, the median forecast for a similar poll on the U.S. Federal Reserve is exactly where futures currently price the Fed's terminal rate next year - 5.0%. Any reversion of terminal rate pricing to consensus or below could see the pound wobble again. "That said, we have been stressing downside risks to our terminal rate projection, given the constant dovish messaging from the MPC. BoE poll question on Terminal Rate Risks? Central Bank Rate Hike CampaignSterling volatilityThe opinions expressed here are those of the author, a columnist for Reuters.

☆ Bank of England's Dhingra warns of deeper and longer recession with higher rates
▼ + stars: | 2022-12-03 | by ( ) www.reuters.com time to read: +2 min

LONDON, Dec 3 (Reuters) - Bank of England rate-setter Swati Dhingra said in an interview published on Saturday that higher interest rates could lead to a deeper and longer recession, adding there were few signs that demands for higher wages risked a wage-price spiral. While most of her colleagues backed a 75 basis-point hike to 3% last month, Dhingra voted for a half-percentage-point increase in interest rates last month, and later told lawmakers the central bank could deepen an expected recession if it pushed up borrowing costs further. "You do see a much deeper and a longer recession with rates being much higher," she told the Observer newspaper. "A wage-price spiral would mean wages should be above inflation," Dhingra told the paper. She said that those expecting further large hikes in interest rates were not taking in account BoE surveys suggesting a fall in investment and employment in the next two years.

LONDON, Nov 24 (Reuters) - Bank of England Deputy Governor Dave Ramsden backed more interest rate hikes on Thursday, but said he would consider cutting rates if the economy and inflation pressures panned out differently to his expectation. But Ramsden also said he would "continue to vote to respond forcefully" if inflation pressures proved to be more persistent than expected. The BoE has raised interest rates eight times since December 2021. Ramsden said the government's budget statement published earlier this month - comprising tax rises and spending restraint - was likely to push down on economic growth and inflation. "However, the vast majority of these measures do not come into effect until April 2025 so will have very little effect over the MPC's three-year forecast horizon, relative to what was assumed in the November MPC," Ramsden said.

☆ Brexit is weighing on UK economy, Bank of England officials say
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 16 (Reuters) - The effects of Brexit are weighing on Britain's economy, more than six years after voters decided to leave the European Union, Bank of England officials said on Wednesday. "It's undeniable now that we're seeing a much, much bigger slowdown in trade in the UK compared to the rest of the world," Swati Dhingra said in response to a question about Brexit from a lawmaker on parliament's Treasury Committee. "There's also the services exports side ... there again, we're seeing a really strong stagnation. We're definitely performing below trend in terms of the exports numbers, in terms of the imports, even probably a bit bigger than that." Reporting by David Milliken and Sachin Ravikumar; writing by William Schomberg; editing by Andy BruceOur Standards: The Thomson Reuters Trust Principles.

Markets were expecting Bank Rate to peak at around 4.7%, little changed by the BoE's announcement. [1/2] A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. The BoE has faced weeks of political and financial market chaos since its last rate rise on Sept. 22. Markets are now more stable, with British government borrowing costs broadly back to where they were before the turmoil. Under the BoE's forecasts, inflation is due to fall below its 2% target by mid-2024, even if interest rates stay at 3%.

☆ Bank of England makes historic rate hike despite 'very challenging' outlook
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +5 min

By David Milliken and Andy BruceLONDON, Nov 3 (Reuters) - The Bank of England raised interest rates to 3% on Thursday from 2.25%, its biggest rate rise since 1989 as it warned of a "very challenging" outlook for the economy. "Further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets," the BoE said in unusually specific guidance to investors. Just before Thursday's policy decision, markets expected rates to peak at around 4.75%. "The Committee continues to judge that, if the outlook suggests more persistent inflationary pressures, it will respond forcefully, as necessary," the MPC added. (Reporting by David Milliken and Andy Bruce)((uk.economics@reuters.com; +44 20 7513 4034))Keywords: BRITAIN BOE/DECISIONOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Gimme Shelter
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike Dolan. read moreBut with the pound falling anew against the dollar on the credit rating and IMF warnings, the real problem is in UK government bonds, or gilts. read moreWith Wall Street stocks hitting a new low for the year on Tuesday, global shares sank to two-year lows on Wednesday. Fed chairman Jerome Powell and a host of other Fed speakers are in the diary again for later on Wednesday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Sterling higher as BoE, Treasury seek to calm markets
▼ + stars: | 2022-09-27 | by ( Samuel Indyk | ) www.reuters.com time to read: +3 min

UK pound coins plunge into water coloured with the European Union flag colours in this illustration picture, October 26, 2017. The BoE "will not hesitate" to raise interest rates if needed to meet its 2% inflation target, governor Andrew Bailey said on Monday. "The BoE saying it won't change course has helped the recovery in sterling as it conveys a message that there's no sense of panic at the central bank," Cole added. "UK markets will now be hyper-sensitive to any communication from UK policymakers," said ING head of markets Chris Turner in a note. Pill voted with the majority to raise interest rates by 50 basis points at last week's policy meeting.

☆ Bank of England raises rates to 2.25%, despite likely recession
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +3 min

A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. REUTERS/Maja SmiejkowskaLONDON, Sept 22 (Reuters) - The Bank of England raised its key interest rate to 2.25% from 1.75% on Thursday and said it would continue to "respond forcefully, as necessary" to inflation, despite the economy entering recession. However, it noted that the energy price cap, while reducing inflation in the short term, would boost pressures further out. Before the rate decision, financial markets expected the BoE to raise rates to 3.75% by the end of the year, with a peak of 5% reached in mid-2023. Less than a year ago, BoE rates were at a record-low 0.1%.

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