They were more interesting than usual. Read more
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… is the title of the 1973 album from ‘prog rockers’ Genesis, and it also sums up the UK’s inflation problem, according to Bank of England hawk, Andrew Sentance.
In a speech at the Institute of Economic Affairs ‘State of the Economy’ conference on Thursday, the Monetary Policy Committee member says the value of the pound needs to be a key area of focus (not neglect) for the UK’s central bank, if it is to have any hope of mitigating the impact of global inflationary pressures. Read more
Following on from CPI and RPI inflation figures earlier this week, comes the Bank of England’s quarterly gauge of public attitudes to inflation — and it’s showing public expectations of inflation for the coming year at their highest level since August 2008:
Median expectations of the rate of inflation over the coming year were 3.9%, compared with 3.4% in August Read more
The song remains the same, as Led Zeppelin and Andrew Sentance would say. The August Bank of England MPC minutes on Wednesday offered what has by now become a bit of an institutional trademark: (an excruciating) mix of uncertainty on rates, says FT Alphaville. And yes, Sentance once again voted to raise rates. Read more
The consequences of near zero interest rate policies (ZIRP) are many and varied, as the UK’s retail investors found to their cost on Monday.
National Savings & Investments, the UK government’s savings arm, pulled a number of deposit accounts and cut rates on some others as it moved to stem the flow of money into its products. Read more
It’s four years since Andrew Sentance was appointed by Gordon Brown, then Chancellor of Exchequer, as a member of the monetary policy committee. And he’s decided to mark that date by explaining why he voted for a small rise in interest rates to 0.75 per cent last month in a speech to the Thames Valley Chamber of Commerce in reading on Tuesday.
But not in the usual dry central banker way. Read more
Here’s a bold call from UBS — sterling to end the year at $1.35.
Now, cable is currently trading just over $1.50 and last touched $1.35 in August 1985. Read more
Sterling rose to a six-week high against the dollar on Wednesday after minutes of the Bank of England’s monetary policy committee meeting this month revealed one member had voted to raise interest rates, the FT says. The minutes surprised investors by showing that Andrew Sentance wanted to raise rates by 25 basis points from a record low of 0.5 per cent, the first call by an MPC member for monetary tightening since August 2008.