BoE Archive

CB announcements

Just looks like the Fed lowered the rate on its swap lines to keep libor down, which had been moving up to its prior swap line rate. No big deal, apart from the fact the Fed shouldn’t be allowed to lend on an unsecured basis like this without explicit approval of congress. ...Read More

Posen Says G7 Central Banks Should Do More QE

He should know better by now. Must be a slow learner. Posen Says G7 Central Banks Should Do More QE, Reuters Reports Aug. 31 (Bloomberg) — Bank of England policy maker Adam Posen said central banks in advanced economies should undertake more quantitative easing to aid the global recovery and make it ...Read More

BOE’s King Says Higher Interest Rates Would Exacerbate Debt Woes

Taking a page from the Fed’s playbook? The BOE has seen the Fed effectively scare portfolio managers and speculators out of the dollar with QE, which they know does nothing apart from just that, and may in fact even be fundamentally supportive of the dollar. So desirous of a weaker currency, why ...Read More

UK cpi forecast down

Funny how those ultra low rates never do seem to generate inflation as many fear… *BOE SAYS NEAR-TERM CPI OUTLOOK HIGHER ON POUND, OIL PRICE *BOE CONSTANT-RATE FORECAST SHOW INFLATION BELOW 2% IN 2 YEARS *BOE SAYS DOWNSIDE U.K. GROWTH RISKS HAVE `INCREASED SOMEWHAT’ *BOE FORECASTS BASED ON RATE AT 0.6% END ...Read More

Blanchflower

[Skip to the end] >    >   (email exchange) >    >   On Thu, Oct 8, 2009 at 7:55 AM, wrote: >    >   Check Blanchflower comments … he’s pretty good on the deficit and QE as well. >    Yes, refreshing! Blanchflower Says Now Is Not the Time to Cut Government Deficit Oct. 8 (Bloomberg) — Former Bank ...Read More

King Comments on rate paid Bank Reserves

[Skip to the end] Might be secretly worried about the relatively strong currency. Many of them still think rates matter for the level of their currency even though the BOE research says they don’t matter. >    >   (email exchange) >    >   On Tue, Sep 15, 2009 at 5:34 AM, Dave wrote: >    >   BOE King ...Read More

FT: Bank Struggles to gauge if QE is taking effect

[Skip to the end] >    >   On Thu, Aug 20, 2009 at 4:11 AM, Marshall wrote: >    >   Maybe the BofE is having problems because it is looking at this through the wrong >   monetary paradigm. All QE is doing is switching one form of debt term structure >   for another, not actually contributing to aggregate ...Read More

U.K. Daily – Consumer Confidence Rose to the Highest in a Year in July

[Skip to the end] So does Brown become the hero for his fiscal adjustments or the King for low rates and quantitative easing? I do not even want to know… U.K. Services Index Rose to Highest Since February 2008 in July UK retailers say inflation at 6-month low UK house prices up ...Read More

IMF Says U.K. Can’t Afford 2010 Stimulus

[Skip to the end] This says a lot more about the IMF than the UK: IMF Says U.K. Can’t Afford 2010 Stimulus, Telegraph Reports The U.K. is alone with Argentina as the only members of the Group of 20 that cannot budget for temporary spending increases next year to aid economic growth, ...Read More

‘no one saw this coming’ : understanding financial crises through accounting models

[Skip to the end] Objections to deficit spending- 1. Deficits now mean higher taxes later. Response — Taxes function to regulate aggregate demand, not raise revenue per se. Taxes will go up ‘later’ only if aggregate demand is ‘too high’ later which means unemployment becomes ‘too low.’ that is exactly the point ...Read More