DIRS.INFO The most relevant business & tech news

☆ Morning Bid: Stocks clocking best week of the year
▼ + stars: | 2023-11-03 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2023. The U.S. October employment report out later on Friday caps a hectic two weeks of central bank decisions, company updates and unnerving geopolitics. As the first major marker of U.S. economic strength in the final quarter of the year, the payrolls report packs a punch despite expected strike-related distortions. The interest rate relief this week is pervasive, however, as the Fed, ECB and BoE all paused tightening and U.S. Treasury debt sales worries ebbed somewhat. U.S. Treasury (.MOVE) and equity market (.BIX) volatility gauges have subsided to their lowest levels since early last month.

Persons: Brendan McDermid, Mike Dolan, BoE, ebbed, Antony Blinken, Sam Bankman, Fried, Michael Barr, Neel Kashkari, Huw Pill, Emelia Sithole Organizations: New York Stock Exchange, REUTERS, Mike, U.S, Federal Reserve, European Central Bank and Bank of England, Apple, Fed, ECB, Treasury, U.S . Treasury, Labor Department, Eversource Energy, Cardinal Health, Dominion Energy, Gartner, Church, Dwight, AMC, Liberty Media, Icahn Enterprises, Federal, Bank of England, Israel Productivity, Reuters Graphics Reuters, Reuters, Thomson Locations: New York City, U.S, Isreal, Gaza, Gaza City, Canada, Minneapolis, Israel

☆ Oil prices steady, on track for second straight week of losses
▼ + stars: | 2023-11-03 | by ( ) www.cnbc.com time to read: +1 min

A view from the oil company Tatneft in Tatarstan, Russia on June 04, 2023. Oil prices were little changed on Friday, heading for their second straight week of losses as the U.S. central bank left the door open for possible future rate hikes and worries that the Middle East conflict would disrupt supply eased. Brent crude futures rose 6 cents to $86.91 a barrel by 0010 GMT, while U.S. West Texas Intermediate crude futures gained 12 cents, or 0.2%, to $82.58 a barrel. Brent was on track to fall about 4% in the week, while WTI looked set to close down 3.5%. Meanwhile, the U.S. Federal delivered a "dovish" pause to its rate hikes on Wednesday, while the BoE delivered a "hawkish" pause on Thursday.

Persons: Brent, WTI, BoE Organizations: Brent, U.S, West Texas, Palestinian, U.S . Federal Locations: Tatarstan, Russia, Tatneft, U.S, Gaza, Israel, Saudi Arabia

☆ Analysis: Traders bet ECB will be first big central bank to cut rates
▼ + stars: | 2023-11-03 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +5 min

A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. With investors confident that big central banks are likely done raising rates, focus has switched to when rate cuts will start. Traders now price in over an 80% chance of a 25 basis-points (bps) ECB cut by April, which had been fully priced for July last week. Piet Christiansen, chief analyst at Danske Bank, said the expectations for ECB rate cuts now reflected a "doom and gloom" scenario. He added the ECB would need to cut rates at least as much as traders expect next year.

Persons: Heiko Becker, BoE, Shamik Dhar, Christine Lagarde, Piet Christiansen, Lagarde, Goldman, Gurpreet Gill, Dario Perkins, Yoruk, Sumanta Sen, Kripa Jayaram, Dhara Ranasinghe, Emelia Organizations: European Central Bank, REUTERS, Traders, ECB, Fed, Federal Reserve, Bank of England, BNY Mellon Investment, Treasury, Reuters, Danske Bank, Asset Management, Lombard, Thomson Locations: Frankfurt, Germany, United States, Europe, U.S, Britain, Israel

☆ Bank of England set to keep rates at 15-year high despite slowdown signs
▼ + stars: | 2023-11-02 | by ( William Schomberg | ) www.reuters.com time to read: +3 min

The BoE's Monetary Policy Committee is facing an inflation rate more than double that of the euro zone and almost twice the U.S. rate. It voted by only a narrow 5-4 margin in September to halt its run of increases in borrowing costs. But signs of a slowdown in much of the British economy have become clearer since then and some economists say a recession might already be under way. The central bank said in its last set of economic forecasts in August that inflation would only return to 2% in the second quarter of 2025. But Bailey and his MPC colleagues are likely to reiterate that they are ready to raise rates higher if needed.

Persons: BoE, Mike Riddell, Riddell, Andrew Bailey, Bailey, Rishi Sunak, Sunak, Jeremy Hunt, Hunt, William Schomberg, Catherine Evans Organizations: Bank of England, European Central Bank, U.S . Federal Reserve, Allianz Global Investors, BoE, MPC, Conservative Party, Thomson Locations: U.S

And some banks think the Bank of England may be the latest to paper over the QT cracks as soon as this week. Already, there's been some awkward shuffling of feet around a process that was meant to be just balance sheet plumbing. The Federal Reserve may be further away from dealing with the QT issue head on. Deutsche Bank's UK strategists agree and think "the bar for a shift in QT policy is lower heading into yearend." Deutsche argues the BoE could either skew gilt sales shorter or agree to sell evenly based on current market valuations.

Persons: there's, BOE, BoE, BofA, Deutsche, Mike Dolan, Lisa Shumaker Organizations: Bank of England, European Central Bank, Federal, . Treasury, Bank, Treasury, Bank of America, Deutsche Bank's, Reuters Graphics Reuters, Reuters, Thomson Locations: Treasuries, yearend

☆ UK house prices show surprise rise in October - Nationwide
▼ + stars: | 2023-11-01 | by ( William Schomberg | ) www.reuters.com time to read: +2 min

Prices increased by 0.9% from September when they had risen by a marginal 0.1%, Nationwide said. It was the biggest monthly increase since August 2022. Economists polled by Reuters had expected prices to fall by a monthly 0.4% and by 4.8% year on year. "The uptick in house prices in October most likely reflects the fact that the supply of properties on the market is constrained," Nationwide Chief Economist Robert Gardner said. "While some buyers are able to accept higher mortgage payments, helping to prop up house prices, their number is dwindling as shown by the drop in mortgage approvals in September," Pattison said.

Persons: Robert Gardner, BoE, Gardner, Imogen Pattison, Pattison, William Schomberg, Jason Neely Organizations: Nationwide, Reuters, Royal Institution, Chartered Surveyors, Bank of England's, Capital Economics, Thomson

☆ Bank of England set to hold rates again, but markets see no cuts on the horizon
▼ + stars: | 2023-11-01 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

People walk outside the Bank of England in the City of London financial district, in London, Britain, January 26, 2023. "U.K. economic activity appears to have slowed further, the housing market is weaker, consumer spending is falling, and inflationary pressure is showing further signs of dissipating. U.K. inflation came in at 6.7% in September , unchanged from the previous month and considerably higher than in other G7 economies. "The only way that we can rationalise this is if U.K. inflation remains stuck at 3% or higher forever, and/or the U.K. economy avoids a meaningful recession," he said. The European Central Bank last week held rates steady at their current record high of 4%, ending a run of 10 straight hikes.

Persons: Mike Riddell, BoE, Swati Dhingra, Riddell, Abbas Khan, Haskel, Mann, Dhingra, Catherine Mann, Allianz's Riddell Organizations: Bank of England, Allianz Global Investors, P, MPC, Bank, Monetary, LONDON, Barclays, U.S . Federal, Treasury, European Central Bank Locations: City, London, Britain, Israel

☆ Fall in UK jobs postings shows labour market is cooling, Adzuna says
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +2 min

Online job adverts fell by 1.6% in September from August, bucking the usual end-of-summer bounce in job postings, and advertised salaries fell by the same amount, Adzuna said. "September traditionally sees a surge in job market activity but the figures we're seeing this year could signal a cooling off of the job market, which had shown signs of resilience earlier in the year," Adzuna co-founder Andrew Hunter said. The Office for National Statistics said earlier this month its measure of job vacancies fell to a two-year low of 988,000 in the three months to September. Separately on Monday, a survey showed small businesses recovering a bit of their lost confidence but the overall mood remained negative. Martin McTague, FSB's national chair, said the survey showed signs of stabilisation after 18 months of surging costs.

Persons: Adzuna, Andrew Hunter, BoE, Martin McTague, McTague, Suban Abdulla, William Schomberg, Andy Bruce Organizations: Bank of England, National Statistics, Federation of Small, Hospitality, Thomson

☆ Asia stocks mull over Middle East, central bank meetings
▼ + stars: | 2023-10-30 | by ( Wayne Cole | ) www.reuters.com time to read: +5 min

The earnings season also continues with Apple, Airbnb, McDonald's, Moderna and Eli Lilly & Co among the many reporting this week. Early on Monday, S&P 500 futures had edged up 0.3% to 4,151, while Nasdaq futures added 0.5%. Japan's Nikkei (.N225) fell 1.1% amid speculation the Bank of Japan (BOJ) might tweak its yield curve control (YCC) policy after its two-day policy meeting wraps up on Tuesday. The Bank of England is also expected to stay on hold this week, with markets pricing around a 70% chance it is done tightening altogether. Oil prices eased as worries about demand outweighed risks to Middle East supplies, at least for the moment.

Persons: Issei Kato, BoE, BOJ, Eli Lilly, China Evergrande, Treasuries, Goldman Sachs, reacceleration, Brent, Wayne Cole, Jamie Freed Organizations: REUTERS, Nikkei, Apple, Moderna, Nasdaq, HK, Japan's Nikkei, Bank of Japan, Barclays, Treasury, NatWest, Federal Reserve, Bank of England, Capital, Thomson Locations: Tokyo, Japan, U.S, Gaza, payrolls SYDNEY, United States, Britain, McDonald's, Gaza's, Iranian, Asia, Pacific, China, Israel, East

HIGH INFLATION FALLS SLOWLYConsumer price inflation hit 11.1% in October 2022, which was higher than in comparable economies, and it has fallen more slowly too. But service price inflation, which the BoE watches closely, rose. Economists expect a big fall in headline inflation in October as last year's energy price surge fades from the comparison. However, the BoE issued a forecast in August saying inflation would return to 2% only in the second quarter of 2025. Financial markets do not see a more than 50% chance of the BoE cutting Bank Rate until August 2024.

Persons: BoE, Andrew Bailey, Reuters Graphics Reuters Graphics BOE, Huw Pill, William Schomberg, Sumanta Sen, Hugh Lawson Organizations: Bank of England, Reuters Graphics, HIT, Reuters Graphics Reuters Graphics, Financial, European Central Bank, Graphics, Thomson Locations: Britain, U.S

☆ Big central banks hit pause, with rate cuts far off
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +5 min

On Oct. 23, Fed Chair Jay Powell said a strong economy and tight jobs market could warrant more rate rises. Interest rate futures show traders believe the BoE will not cut rates, now at their highest since 2008, until at least June 2024. "The Governing Council’s past interest rate increases continue to be transmitted forcefully into financing conditions," the ECB said, adding it would follow a "data-dependent" approach and future decisions would be based on incoming data. Prime Minister Jonas Gahr Stoere told parliament last week interest rates may have peaked. Reuters Graphics Reuters Graphics8) AUSTRALIAThe Reserve Bank of Australia held rates steady at 4.1% for a fourth meeting in October.

Persons: Jonathan Ernst, Jay Powell, BoE, Jonas Gahr Stoere, Michele Bullock, Naomi Rovnick, Harry Robertson, Alun John, Yoruk Bahceli, Samuel Indyk, Chiara Elisei, Kripa Jayaram, Pasit, Riddhima, Sumanta Sen, Vineet, Amanda Cooper, Giles Elgood Organizations: . Federal, REUTERS, European Central Bank, Federal Reserve, Bank of England, UNITED, Reuters, Reserve Bank of New Zealand, BRITAIN, Bank of Canada, BoC, ECB, Norges Bank, Reuters Graphics Reuters, Reserve Bank of Australia, Bank of Japan, Thomson Locations: Washington, Japan, hawkish, dovish, NORWAY, SWEDEN Sweden, SWITZERLAND, Swiss, Gaza, JAPAN

We're buying 200 shares of Coterra Energy (CTRA) at roughly $28 each. Following Thursday's trade, Jim Cramer's Charitable Trust will own 1950 shares of CTRA, increasing its weighting to about 2% from 1.83%. CTRA 1M mountain Coterra Energy 1-month Coterra Energy is an exploration and production company that is roughly split evenly between oil and natural gas . More importantly, the reason to own Meta stock has not changed as it has effectively leveraged AI to increase engagement on its platforms as well as monetization. An oil pumpjack pulls oil from the Permian Basin oil field in Odessa, Texas, on March 14, 2022.

Persons: Jim Cramer's, We've, Exxon Mobi, we've, BOE, Hess, Coterra, Mark Zuckerberg's, Jim Cramer, Jim, Joe Raedle Organizations: Coterra Energy, CTRA, Natural Resources, Exxon, Coterra, Chevron, Reality Labs, Meta, CNBC, Getty Locations: Odessa , Texas

☆ BoE likely to keep high rates on hold even as signs of slowdown mount
▼ + stars: | 2023-10-25 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

The last Monetary Policy Committee meeting in September resulted in five members voting to pause, just outnumbering the four who sought another increase. So far, investors are not challenging the BoE's message that interest rates will stay high for a considerable period. BOE Chief Economist Huw Pill likened the outlook for monetary policy to the lofty, flat and long profile of Table Mountain during a visit to South Africa in late August. But economists expected little change in the BoE's previous forecasts that inflation will fall to 2% in two years' time. "Recent geopolitical events will probably induce a modicum of monetary policy caution, reinforcing the likelihood of unaltered policy settings," analysts at NatWest Markets said.

Persons: Hollie Adams, BoE, Andrew Bailey, James Smith, Smith, BOE, Huw Pill, Pill, Bailey, Rishi Sunak, Price, William Schomberg, Jonathan Oatis Organizations: Bank of England, City of, REUTERS, Reuters, ING, Investors, U.S . Federal, Monetary Fund, NatWest Markets, Thomson Locations: City, City of London, Britain, South Africa

☆ Britain scraps cap on banker bonuses inherited from EU
▼ + stars: | 2023-10-24 | by ( Huw Jones | ) www.reuters.com time to read: +4 min

A general view of the Bank of England in the City of London, Britain, September 25, 2023. REUTERS/Hollie Adams/File Photo Acquire Licensing RightsLONDON, Oct 24 (Reuters) - Britain on Tuesday scrapped a decade-old cap on banker bonuses inherited from the European Union, signalling a clear divergence in post-Brexit financial rules from the 27-country bloc it left in 2020. The BoE and Financial Conduct Authority proposed scrapping the cap in a public consultation earlier this year, and its abolition was confirmed in final policy published on Tuesday. The TUC confederation of labour unions said the decision to scrap the bonus cap was "obscene". Law firm Linklaters said scrapping the cap puts Britain back into line with the rest of the world, apart from the EU, but it would continue to apply to staff working at EU banks in London who are regulated under the bloc's rules.

Persons: Hollie Adams, BoE, Suzanne Horne, Paul Hastings, Paul Nowak, Linklaters, David Milliken, Iain Withers, Barbara Lewis, Mark Potter, Jonathan Oatis Organizations: Bank of England, City of, REUTERS, European Union, Financial, Authority, London, Finance, TUC, Britain, Thomson Locations: City, City of London, Britain, EU, London, New York, United States, Asia

☆ Bank of England rate has peaked, to stay at 5.25% through Q2
▼ + stars: | 2023-10-24 | by ( Jonathan Cable | ) www.reuters.com time to read: +3 min

LONDON, Oct 24 (Reuters) - The Bank of England is likely done with policy tightening and will leave Bank Rate at 5.25% on Nov. 2, according to the vast majority of economists polled by Reuters who did however caution the chance of another increase this year was high. Only 12 economists forecast a quarter point rise to 5.50% at the November Monetary Policy Committee meeting. Inflation was expected to gradually decline across the forecast horizon but it won't reach target until Q2 2025, the poll showed. Around one-third of economists expected the Bank to act earlier. The BoE was forecast to reduce Bank Rate by 50 basis points in the fourth quarter, putting it at 4.50% by year-end.

Persons: James Smith, Elizabeth Martins, BoE Governor Andrew Bailey, BoE, ING's Smith, Jonathan Cable, Prerana Bhat, Sujith Pai, Jonathan Oatis Organizations: Bank of England, Reuters, Bank, ING, MPC, HSBC, United States Federal Reserve, European, Thomson

The BoE is monitoring the labour market closely as it considers whether it needs to resume raising interest rates, having kept them on hold in September after 14 hikes in a row. Under the previous methodology, the unemployment rate had been reported as 4.3% for the three months to July rather than 4.2%. Still, the new data showed more slack in the labour market than the BoE had predicted in August, when it forecast an unemployment rate of 4.1% for the third quarter as a whole. "It is probably only a matter of time before the recent loosening of the labour market feeds through into significantly slower wage growth," Pugh said. The latest ONS estimate showed employment fell by 133,000 in the three months to July, compared with 207,000 in its previous estimate.

Persons: BoE, Thomas Pugh, Pugh, Tony Wilson, Andy Bruce, William Schomberg, Paul Sandle, Bernadette Baum Organizations: Office, National Statistics, Bank of England, Labour Force Survey, RSM, ONS, Financial, Institute for Employment Studies, Thomson

☆ UK 30-year borrowing costs rise to highest since 1998
▼ + stars: | 2023-10-20 | by ( David Milliken | ) www.reuters.com time to read: +2 min

A bus passes the Bank of England in the City of London, Britain, February 14, 2017. Ten-year gilt yields were 2 basis point higher on the day at 4.69%, not far off a 15-year high of 4.755% set on Aug. 17. The BoE has raised its interest rate 14 times since December 2021 to 5.25%, but investors think it is now on pause, with only a 13% chance of a rate rise on Nov. 2 after its next meeting. The chances of a further quarter-point rate to 5.5% by March next year stand at around 55%. Reporting by David Milliken; editing by William JamesOur Standards: The Thomson Reuters Trust Principles.

Persons: Hannah McKay, Liz Truss, Jerome Powell, Richard Hunter, Jeremy Hunt, BoE, David Milliken, William James Our Organizations: Bank of England, City of, REUTERS, Treasury, Federal, Interactive Investor, Bank of, Thomson Locations: City, City of London, Britain

These showed that a rise in fuel prices between August and September put upward pressure on the annual CPI rate, which economists had expected to drop to 6.6%. "Progress in bringing inflation down is proving slow, with the UK generating higher levels of inflation than any other major industrialised nation," said Ian Stewart, chief economist at accountancy firm Deloitte. "The persistence of underlying inflation, and service price pressures, suggests that interest rates are likely to stay close to current levels for much of the next year," he added. Services price inflation - another CPI component the BoE studies - rose to 6.9% in September from 6.8%. British consumer price inflation remains the highest in the Group of Seven advanced nations, with France and Italy the nearest with rates of 5.7% and 5.6% respectively for September.

Persons: Ian Stewart, BoE, Rishi Sunak, Jeremy Hunt, Bernadette Baum, Toby Chopra Organizations: Bank of England, Office, National Statistics, Deloitte, Seven, Thomson Locations: British, August's, Ukraine, France, Italy

☆ UK inflation holds steady for September after Bank of England pauses rate hikes
▼ + stars: | 2023-10-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

LONDON — U.K. inflation came in at 6.7% in September, slightly ahead of expectations and unchanged from the previous month. For August, the U.K. consumer price index surprised with a dip to 6.7%, below expectations, which sparked the Bank of England to end a run of 14 straight interest rate hikes. The bank had been hiking rates consistently since December 2021 in a bid to rein in inflation, taking its main policy rate from 0.1% to a 15-year high of 5.25% in August. The market is pricing around a 77% chance that the Bank holds rates steady again at its next meeting on November 2nd. For now, the higher for longer interest rate narrative will continue to persist," he said Wednesday in an emailed note.

Persons: Jeremy Hunt, Marcus Brookes, Brookes, Hetal Mehta, BoE Organizations: LONDON, Reuters, National Statistics, Chancellor, Bank of, Bank, Quilter Investors, Bank of England's, Bank of England Locations: Canary, London, Bank of England, British, James's

REUTERS/Kai Pfaffenbach/File Photo Acquire Licensing RightsHONG KONG/LONDON, Oct 17 (Reuters) - Bond yields rose on Tuesday and stocks steadied as markets continued to retrace last week's moves to safe-haven assets, focusing on corporate earnings prospects and the resilience of the U.S. economy rather than tensions in the Middle East. Benchmark 10-year bond yields in the U.S. and Germany (Bunds) rose around 5 basis points (bps) on Tuesday having risen 5-8 bps Monday - bond yields move inversely to prices. Israel's shekel remained on the weak side of the 4 per dollar level it softened to for the first time since 2015 on Monday. Russian President Vladimir Putin on Tuesday arrived in Beijing to meet Chinese President Xi Jinping even as the war in Ukraine raged on. If investors do not receive the coupon payment, all of Country Garden's offshore debts will be deemed in default.

Persons: DAX, Kai Pfaffenbach, Banks, BNY, Goldman Sachs, We're, Jorge Garayo, Joe Biden, Israel, Israel's shekel, Vladimir Putin, Xi Jinping, BoE, Gold, Brent, Selena Li, Alun John, Shri Navaratnam, Ed Osmond, Alex Richardson Organizations: Deutsche, REUTERS, Bank of America, Treasury, Bund, Societe Generale, U.S, Israel, Hamas, Iran's, Tuesday, HK, Bank of England, Swiss, Venezuela, Thomson Locations: Frankfurt, Germany, HONG KONG, U.S, Iran, Gaza, Beijing, Ukraine, Friday's, Washington, Israel, Hong Kong, London

☆ UK regular pay growth slows for first time since January
▼ + stars: | 2023-10-17 | by ( David Milliken | ) www.reuters.com time to read: +4 min

Private-sector regular pay - the component looked at most closely by the BoE - saw annual growth slow to 8.0% in the three months to August, from 8.1%. Regular pay, adjusted for CPI inflation, grew by an annual 0.7% in the three months to August. Reuters GraphicsSLUGGISH ECONOMYBank of England Chief Economist Huw Pill said on Monday that fast rates of nominal pay growth stood at odds with most other labour market measures, which have pointed to a slowing economy. The number of job vacancies in the three months to September fell to a two-year low of 988,000, Tuesday's data showed. Unemployment figures and other related labour market data will not be published until Oct. 24, after the ONS said on Friday it needed more time to take account of low response rates.

Persons: Kevin Coombs, BoE, James Smith, Jeremy Hunt, Rishi Sunak, Huw Pill, payrolls, Ashley Webb, Webb, Sachin Ravikumar, William Schomberg, Bernadette Baum Organizations: REUTERS, LONDON, Bank of England, Britain's, National Statistics, Reuters, U.S, Bank, England's, ING, Private, of England, International Monetary, Capital Economics, Thomson Locations: Canary Wharf, London, Britain

☆ Morning Bid: Stocks ease in nervous Gaza wait
▼ + stars: | 2023-10-16 | by ( ) www.reuters.com time to read: +3 min

Israeli soldiers gather on and around a tank near Israel's border with the Gaza Strip, in southern Israel October 15, 2023. ECB speakers are out in force this week, including Bank of Spain Governor Pablo Hernández de Cos on Monday, when the euro zone also releases trade data. It will be a busy week for BoE rhetoric as well, starting with the central bank's chief economist, Huw Pill, on Monday. There's lots of important British data, with house prices later today, jobs and wage figures on Tuesday, and CPI on Wednesday. Fed Chair Jerome Powell's speech at the Economic Club of New York this Thursday, just before the start of the central bank's blackout period, is probably the most anticipated bit of central bank speak for the week.

Persons: Ronen, Kevin Buckland, Brent, Antony Blinken, Joe Biden, Pablo Hernández de Cos, BoE, Huw Pill, Jerome Powell's, Goldman Sachs, Morgan Stanley, Cos, Edmund Klamann Organizations: REUTERS, Japan's Nikkei, Bank of Spain, U.S . Federal Reserve, Economic, of New, Netflix, Thomson Locations: Gaza, Israel, Iran, Asia, Europe, of New York, U.S

☆ BOE Leaves Key Interest Rate At 5.25%
▼ + stars: | 2023-10-16 | by ( Paul Hannon | ) www.wsj.com time to read: 1 min

A city worker passes the Bank of England (BOE) in the City of London, UK, on Monday, Oct. 16, 2023. Photo: Jason Alden/Bloomberg NewsThe Bank of England’s policy makers Thursday left their key interest rate unchanged for the second straight meeting, but said they don’t expect to ease policy soon. The decision to hold the rate at 5.25% was backed by six members of the Monetary Policy Committee, while three voted for a rise in the key rate to 5.5%. At their last meeting in September, four members voted for a higher rate. Prior to that decision to hold, the BOE had raised its key rate in 14 straight meetings.

Persons: BOE, Jason Alden Organizations: Bank of England, City of, Bloomberg, The Bank of, Monetary, Committee Locations: City, City of London

☆ UK CFOs lose their appetite for debt after rates climb -Deloitte
▼ + stars: | 2023-10-15 | by ( ) www.reuters.com time to read: +2 min

A similar proportion said debt sales were unattractive while equity finance became more popular. "Higher interest rates have flipped a decade-old consensus which was previously in favour of debt finance," Ian Stewart, chief economist at Deloitte, said. "Finance leaders are preparing for a period of high interest rates with predicted rates falling only slightly over the next year." The Bank of England raised rates 14 times in a row between December 2021 and August this year, before pausing its increases in September. The CFOs quizzed by Deloitte on average expected the BoE to cut Bank Rate to 4.75% in a year's time from 5.25% now.

Persons: Suzanne Plunkett, Ian Stewart, Top BoE, BoE, William Schomberg, Kylie MacLellan Organizations: REUTERS, Finance, Deloitte, Bank of, Thomson Locations: London, Bank of England, Israel

☆ BoE's Bailey says he's puzzled by stubborn pay growth in UK
▼ + stars: | 2023-10-14 | by ( ) www.reuters.com time to read: +1 min

People walk outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File photo Acquire Licensing RightsMARRAKECH, Morocco, Oct 14 (Reuters) - Bank of England Governor Andrew Bailey said on Saturday he was puzzled by the continued strength of pay growth in Britain which, unlike other areas of the economy, has not yet responded to the BoE's run of 14 back-to-back interest rate hikes. The increases in borrowing costs were having an impact on employment numbers and in the housing market, Bailey told a panel discussion on the sidelines of International Monetary Fund meetings in Morocco. "I should say what is more puzzling and in a sense we wait to see is the situation on pay and earnings where... the usual transmission mechanism is not yet being demonstrated," he said during the event organised by the Group of 30 consultative body. Reporting by Balazs Koranyi Writing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

Persons: Henry Nicholls, Andrew Bailey, Bailey, Balazs Koranyi, William Schomberg Organizations: Bank of England, REUTERS, Rights, International Monetary Fund, Group, Thomson Locations: City, London, Britain, Rights MARRAKECH, Morocco

Search resuls for: "boe"

25 mentions found