The Bank of England’s Monetary Policy Committee just has backed more asset purchases.
It will buy £75bn-worth of bonds, taking its total stock of asset purchases to £275bn. Read more
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Both the European Central Bank and the Bank of England will vote on monetary policy on Thursday.
The Monetary Policy Committee decision is out at noon local time (11.00 GMT). According to a Reuters poll, most expect the Bank to hold rates and maintain the stock of asset purchases at £200bn. However, a significant minority predict more QE, with most of these believing that £50bn is the amount that the MPC is most likely to plump for.
Though those expecting more QE in October are in the minority, the bulk of analysts do believe the Bank will expand its asset purchases at some point in the near future, with November considered the most likely option. The Bank also publishes the minutes of its FPC meeting on Monday at 09.30 local time (08.30 GMT), which may shed some light on the rather ambiguous statement that came out this week. Read more
Dissent is bubbling under at the Monetary Policy Committee, despite a unanimous vote on the Monetary Policy Committee to keep interest rates at 0.5 per cent with a stock of £200bn quantitative easing.
The nine members of the Bank of England’s rate-setting committee disagree on the inflationary pressure in the economy and the power of spare capacity to bring inflation down. This is evident in the minutes of the May meeting, which was held before the MPC had sight of yesterday’s bad inflation figures. Read more
Ever heard of asymmetrical risk?
Well, it may be a key reason why Federal Reserve policymakers are keeping interest rates “exceptionally low” for an “extended period”. Read more
The Bank of England has raised the total amount of quantitative easing by £25bn to £200bn. This should be seen as a gradual ending of the flow of QE, with gilt purchases over the next three months now considerably slower than the issuance of new government paper, writes Chris Giles of the Financial Times. The MPC has also revised again how it believes QE is working and made dovish comments about inflation. Read more
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