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’Bank of England ups QE (and tweaks its gilts)
In the light of its most recent economic projections, the Committee judged that the weak near-term growth outlook and associated downward pressure from economic slack meant that, without further monetary stimulus,
Breaking the Bank (in gilts)
This’ll be a controversial argument about the Bank of England’s buying of UK government debt, we know… but it comes from Philip Rush of Nomura:
Aggressive quantitative easing brings [gilt] market capacity constraints into play.
Tight money UK
Biggest monthly drop in M4 broad money since data began in 1982, biggest monthly drop in consumer credit since data began in 1993… (charts via the Bank of England)
It’s curious. This is technically a key yardstick for success in quantitative easing.
HMT, the Bank of England, and ELA
The Government agrees that a limited statutory power of direction for the Chancellor over the Bank in a time of financial crisis would be helpful in clarifying lines of responsibility and accountability…
The BoE on the collateral crunch
Minutes from the Bank of England’s last policy setting meeting on December 7-8 are out.
The general view of the monetary policy committee was that while inflation remained well above the 2 per cent target,
The UK’s inflation myth
Told ya.
From Reuters…
RTRS-UK NOV CPI 0.2 PCT MM, 4.8 PCT YY (FORECAST 4.8 PCT YY)
RTRS-UK NOV RPI 0.2 PCT MM, 5.2 PCT YY (FORECAST 5.1 PCT YY)
RTRS-UK NOV RPIX 0.2 PCT MM, 5.3 PCT YY (FORECAST 5.2 PCT YY)
RTRS-UK NOV CPI ALL GOODS 5.1 PCT YY,
How Germany is paying for the Eurozone crisis anyway
The European Central Bank has always been a special case in the world of central banks.
While policy is decided centrally, actual enforcement and implementation of that policy is conducted on a national central bank (NCB) level.
Collateral crunch, meet BoE
In light of the continuing exceptional stresses in financial markets, the Bank of England is today announcing the introduction of a new contingency liquidity facility, the Extended Collateral Term Repo (ECTR) Facility.
BoE charts, risk weights you can’t trust
The Bank of England gets the claws out in its Financial Stability Report released on Thursday:
Structural vulnerabilities can amplify shocks stemming from the macrofinancial environment. Fault lines in the regulatory framework are one example of such structural risks.
BoE charts, UK banks’ gloom
Banks are being asked to not choke off the real economy and strengthen their capital levels at the same time.
They are, however, finding it rather difficult to get funding from anywhere except central banks,
BoE governor asks the impossible
From Financial Stability Report, December 2011.
Bolster your balance sheets banks, but keep lending.
Oh, and if you wouldn’t mind disclosing leverage ratios in a year’s time that would be appreciated.
Warning: Financial comet spotted
There’s talking one’s book and then there’s setting it alight and throwing it in a vat of petrol.
And Forbes contributor Nigam Arora appears to have taken the latter approach with this post.
It appears that a big European bank got close to failure last night.
Central banks move to ease European dollar crunch
Readers take note. This is a chart of the one-year German note, currently yielding less than zero. An unprecedented event according to Reuters:
So much for the much talked about flight from German bunds?
If anything,
Any port in a storm – UK gilt edition
After a splurge in September, overseas investors scooped up a more gilts in October, according to figures released by the Bank of England on Tuesday.
(Graphic via Divyang Shah at IFR).
Mix in some QE,
Prepare the printing presses
And so it begins. The softening up exercise for another splurge of QE.
From the Bank of England’s depressing November inflation report.
First, growth (or lack of):
Output appears likely to be broadly flat in the final quarter of 2011.
The history and future of banking, according to Andy Haldane
Andy Haldane’s latest speech is a coherent, logically argued history of modern banking that ends with four intriguing policy ideas. The Bank of England’s Executive Director, Financial Stability, is always worth reading but his Wincott Annual Memorial Lecture,
UK inflation above 5 per cent…
… in September.
From the ONS:
Consumer Price Indices
• CPI annual inflation stands at 5.2 per cent in September 2011
• RPI annual inflation stands at 5.6 per cent in September 2011
The headlines for the September 2011 consumer price indices are:
Why sterling just got splattered
Impressive move following the Bank of England rebooting QE…
Some immediate reaction from Alan Ruskin of Deutsche Bank:
A few things stand-out immediately on BOE QE decision to do extra 75bn, which was more than the market expected,
Four months of UK QE
But not for Christmas! From the Asset Purchase Facility’s market notice for the BoE’s £75bn of further quantitative easing:
Asset Purchase Facility: Gilt Purchases
1. The MPC has decided on a further £75bn of gilt purchases as part of its programme of asset purchases financed by central bank reserves.
Bank of England restarts QE
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to increase the size of its asset purchase programme,
Her Majesty’s SME CLOs?
It’s like putting your foot on the accelerator but because the transmission mechanism isn’t working properly, the car wheels don’t respond.
Actually George, that might be because the car is on fire,
The BoE’s wish list (and mixed message)
The Bank of England’s financial policy committee – the bit of the central bank charged with overseeing the general health of the financial system in the UK – has just released the minutes (well, statement) from its latest meeting.
Don’t blame us for the Great British Krona
Please, please, please don’t accuse the Bank of England of getting involved in currency wars.
It hasn’t deliberately deflated the Great British Krona Sterling in the past couple of years. In fact, monetary policy has has nothing,
BoE MPC minutes – market reaction and comment
The Great British Krona has taken a knock following the publication of the September MPC minutes.
For context, that’s an 8-month low against the dollar.
And so to the comment.
Nomura’s economics team focus on the difficult PR task that faces the Bank:
UK QE2 coming down the slipway
The minutes of the Septmeber’s MPC meeting are out and …
-BOE – DECISION ON QE IN SEPTEMBER WAS FINELY BALANCED FOR MOST MPC MEMBERS
- BOE – FOR SOME MEMBERS, CONTINUATION OF TRENDS SEEN IN AUGUST WOULD BE ENOUGH TO JUSTIFY MORE QE
- BOE- MPC DISCUSSED OTHER OPTIONS TO EASE IF NEEDED,
Preparing the slipway for QE2
And so, the softening up process begins.
Surely that’s the only way to read Monday’s Quarterly Bulletin from the Bank of England, which featured the following article on QE.
(emphasis ours)
Between March 2009 and January 2010,
Beyond the QE2 adventure
While everything blows up… a blow-out speech by Adam Posen:
Make no mistake, the right thing to do right now is for the Bank of England and the other G7 central banks to engage in further monetary stimulus.
A return to asset purchases (in the UK)
We are a bit late to this, but here are selected highlights from Goldman Sachs prediction on Friday of further asset purchases by the Bank of England.
But this time Goldman economist Kevin Daly reckons there’s a good case for the BoE focusing on credit easing rather than the purchase of more gilts.
No tail risk, please. I’m a bank
Spotted by the sharp-eyed creditplumber in a new paper from the Bank of England’s Paul Fisher:
And the footnote:
How many indeed.
Dear Mr Chancellor [updated]
It’s letter writing time again at Threadneedle Street.
In truth there’s not much to see in Tuesday’s inflation report from the Office for National Statistics.
Yes, the CPI number is little bit higher than consensus (4.3 per cent) but the RPI number is bang in line with expectations.