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Chippy

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Topic: The Bank of England
Posted: 05 Nov 2009 at 15:23

The Bank of England's rate-setters have decided to pump an extra £25bn into the economy in their quantitative easing (QE) programme.

They also kept interest rates unchanged at 0.5% for an eighth month.

The Bank has already spent £175bn on QE, which involves printing money to buy assets from banks and other companies to stimulate the economy.

The extra £25bn will be spent over the next three months, which is a slower rate of spending than before.

In the previous three months the Bank had spent £50bn.

Barrie542

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Posted: 05 Nov 2009 at 21:27

Bank of England governor Mervyn King had to write to Chancellor Alistair Darling for permission to allocate the extra money.

"Households have reduced their spending substantially and business investment has fallen especially sharply," Mr King wrote to Mr Darling.

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Posted: 18 Nov 2009 at 20:52

Bank of England rate-setters were split three ways about the decision taken earlier this month to pump £25bn more into the economy, meeting notes show.

Seven of the nine members of the Monetary Policy Committee (MPC) voted for the £25bn extension, one voted for a higher amount and one for no change.

The members were, however, unanimous in the decision to keep interest rates at a record low of 0.5%.

The Bank has pumped billions into the economy to try to stimulate demand.

Under the programme - known as quantitative easing (QE) - the Bank has pursued a policy of injecting money into the economy through buying bonds from banks and other companies.

The decision to pump an extra £25bn into the economy brings the total planned spending under the policy to £200bn.

Inflation risk

Minutes of the meeting showed that MPC member David Miles called for the stimulus programme to be extended by £40bn.

This would "provide greater insurance against the downside risks to growth and inflation arising from constrained credit supply," the notes said.

However, Spencer Dale, the Bank's chief economist, argued that any extension might push inflation higher, and beyond the 2% target. He voted for the programme not to be expanded.

On Tuesday, official figures showed that CPI inflation had risen to 1.5% in October, up from 1.1% in September.

Edited by Smasher - 18 Nov 2009 at 20:52

basil

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Posted: 24 Nov 2009 at 13:33

The Bank of England has revealed that it lent Royal Bank of Scotland (RBS) and HBOS £61.6bn in emergency funding in October and November 2008.

It is the first time that the central bank has detailed this support for the two institutions.

Bank governor Mervyn King told a parliamentary hearing it "was to prevent a loss of confidence spreading through the financial system as whole".

The money was repaid in full by January this year, he added.

Mervyn King said the Bank was acting in its capacity as the lender of last resort.

The loan was in addition to other financial support extended to the banks by the government.

basil

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Posted: 30 Nov 2009 at 12:15

Consumer borrowing - excluding mortgages - recorded its biggest month-on-month fall since Bank of England records began in 1993.

This adds further evidence to the likely trend of people paying off loans rather than saving more during a time of low interest rates.

Unsecured loans fell by £713m in October compared with September.

But the number of mortgages approved for house purchases rose for the 11th month in a row in October.

The number of homeowners remortgaging remains subdued.

Borrowing on credit cards rose by £134m in October compared with September, but was more than offset by the record fall of £713m in other forms of consumer credit such as bank loans, loans for cars, and hire purchase agreements.

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Posted: 06 Dec 2009 at 21:11

The Bank of England has said it will urge banks to increase the availability of £5 notes in their cash machines.

It will also ask shops to give out more fivers in change to meet demand from consumers for the note.

While all UK cash machines must have the capacity to hold all denominations of notes, demand and efficiency means most only give out £10 and £20 notes.

In the past two years the value of £5 notes in supply has increased from about £1bn to £1.3bn.

However, owing to the regularity of use, a £5 note only lasts in circulation for a year before being too damaged to use. The lifespan of a £50 note is usually five years or more.

Now Andrew Bailey, the Bank's executive director for banking services and chief cashier, is to further the fiver's case.

He told the Banknote Conference in Washington that after two recent trials the Bank now had the evidence to "press the case for raising the dispense" of £5 notes.

The Bank had asked HSBC and supermarket Sainsbury's to issue more £5 notes, and feedback from HSBC showed the case for stocking some cash machines with fivers was stronger than previously envisaged, he said.

HSBC had stocked 100 of its cash machines in the Midlands and south west of England with more fivers than usual.

Meanwhile, Sainsbury's reported that by using more £5 notes it had been able to speed up payment processing at the checkout

"In the New Year I hope and expect that we will take these examples to other financial institutions and major retailers to make the case for a change of policy towards issuing £5s," said Mr Bailey.

Popular question

Speaking to the BBC in February, Mr Bailey said the questions he was asked more than any others were why there were not enough £5 notes in circulation and why they were not good enough quality to last very long.

"We are very keen to get £5 notes into circulation," said Mr Bailey, whose signature is printed on every Bank of England note.

The move was welcomed by some in service industries, including Chris Haines, a London taxi driver, who said the shortage of fivers had become a real problem.

"A lot of London cabbies have to buy a cup of tea or buy a sandwich to get enough fivers in their hands to give out as change," he said.

Edited by Chippy - 06 Dec 2009 at 21:33

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Posted: 10 Dec 2009 at 08:59

The Bank of England is expected to announce no change in policy when it reveals the outcome of its most recent meeting later.

The Bank is likely to hold interest rates at 0.5% and leave its £200bn asset purchase programme unchanged.

Last month, the Bank added £25bn to its quantitative easing programme, which involves printing money to buy assets from firms to stimulate the economy.

It is expected to wait until the scheme runs out before taking further action.

'Scene set'

In November, the central bank said that the fragile economy and the risk of inflation falling below its target of 2% had led it to extend its quantitative easing scheme, which runs out in January.

But since then, the economic data has been largely positive.

"Last month's decision set the scene until February, which we expect to be the next focal point for UK monetary policy," said Philip Shaw, economist at Investec.

"We would be shocked if there were any result other than the Bank rate remaining on hold and the QE target fixed at £200bn."

On Wednesday, Chancellor Alistair Darling said the economy would shrink by 4.75% this year and that consumer inflation would rise from 1.5% to about 3% early next year before falling back.

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Posted: 18 Dec 2009 at 09:21

The UK's financial system has become "significantly more stable over the past six months", the Bank of England has reported.

It said the situation had improved on the back of its efforts to assist the sector, such as its quantitative easing (QE) programme and 0.5% interest rates.

However, it said the commercial banks still had to do more to improve their long-term stability.

The Bank is spending £200bn under QE to boost lending in the banking sector.

The Bank is using new money to buy assets from banks and other companies, in order to stimulate both bank lending and the wider economy in general.

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Chippy Members Profile Find Members Posts Forum Newbie Joined: 20 May 2008 Online Status: Offline Posts: 34	Quote Reply Topic: The Bank of England Posted: 05 Nov 2009 at 15:23
	The Bank of England's rate-setters have decided to pump an extra £25bn into the economy in their quantitative easing (QE) programme. They also kept interest rates unchanged at 0.5% for an eighth month. The Bank has already spent £175bn on QE, which involves printing money to buy assets from banks and other companies to stimulate the economy. The extra £25bn will be spent over the next three months, which is a slower rate of spending than before. In the previous three months the Bank had spent £50bn.

Barrie542 Members Profile Find Members Posts Forum Newbie Joined: 29 Sep 2008 Online Status: Offline Posts: 12	Quote Reply Posted: 05 Nov 2009 at 21:27
	Bank of England governor Mervyn King had to write to Chancellor Alistair Darling for permission to allocate the extra money. "Households have reduced their spending substantially and business investment has fallen especially sharply," Mr King wrote to Mr Darling.

Smasher Members Profile Find Members Posts Forum Regular Joined: 13 May 2008 Online Status: Offline Posts: 128	Quote Reply Posted: 18 Nov 2009 at 20:52
	Bank of England rate-setters were split three ways about the decision taken earlier this month to pump £25bn more into the economy, meeting notes show. Seven of the nine members of the Monetary Policy Committee (MPC) voted for the £25bn extension, one voted for a higher amount and one for no change. The members were, however, unanimous in the decision to keep interest rates at a record low of 0.5%. The Bank has pumped billions into the economy to try to stimulate demand. Under the programme - known as quantitative easing (QE) - the Bank has pursued a policy of injecting money into the economy through buying bonds from banks and other companies. The decision to pump an extra £25bn into the economy brings the total planned spending under the policy to £200bn. Inflation risk Minutes of the meeting showed that MPC member David Miles called for the stimulus programme to be extended by £40bn. This would "provide greater insurance against the downside risks to growth and inflation arising from constrained credit supply," the notes said. However, Spencer Dale, the Bank's chief economist, argued that any extension might push inflation higher, and beyond the 2% target. He voted for the programme not to be expanded. On Tuesday, official figures showed that CPI inflation had risen to 1.5% in October, up from 1.1% in September. Edited by Smasher - 18 Nov 2009 at 20:52

basil Members Profile Find Members Posts Forum Regular Joined: 28 Apr 2008 Online Status: Offline Posts: 322	Quote Reply Posted: 24 Nov 2009 at 13:33
	The Bank of England has revealed that it lent Royal Bank of Scotland (RBS) and HBOS £61.6bn in emergency funding in October and November 2008. It is the first time that the central bank has detailed this support for the two institutions. Bank governor Mervyn King told a parliamentary hearing it "was to prevent a loss of confidence spreading through the financial system as whole". The money was repaid in full by January this year, he added. Mervyn King said the Bank was acting in its capacity as the lender of last resort. The loan was in addition to other financial support extended to the banks by the government.

basil Members Profile Find Members Posts Forum Regular Joined: 28 Apr 2008 Online Status: Offline Posts: 322	Quote Reply Posted: 30 Nov 2009 at 12:15
	Consumer borrowing - excluding mortgages - recorded its biggest month-on-month fall since Bank of England records began in 1993. This adds further evidence to the likely trend of people paying off loans rather than saving more during a time of low interest rates. Unsecured loans fell by £713m in October compared with September. But the number of mortgages approved for house purchases rose for the 11th month in a row in October. The number of homeowners remortgaging remains subdued. Borrowing on credit cards rose by £134m in October compared with September, but was more than offset by the record fall of £713m in other forms of consumer credit such as bank loans, loans for cars, and hire purchase agreements.

Chippy Members Profile Find Members Posts Forum Newbie Joined: 20 May 2008 Online Status: Offline Posts: 34	Quote Reply Posted: 06 Dec 2009 at 21:11
	The Bank of England has said it will urge banks to increase the availability of £5 notes in their cash machines. It will also ask shops to give out more fivers in change to meet demand from consumers for the note. While all UK cash machines must have the capacity to hold all denominations of notes, demand and efficiency means most only give out £10 and £20 notes. In the past two years the value of £5 notes in supply has increased from about £1bn to £1.3bn. However, owing to the regularity of use, a £5 note only lasts in circulation for a year before being too damaged to use. The lifespan of a £50 note is usually five years or more. Now Andrew Bailey, the Bank's executive director for banking services and chief cashier, is to further the fiver's case. He told the Banknote Conference in Washington that after two recent trials the Bank now had the evidence to "press the case for raising the dispense" of £5 notes. The Bank had asked HSBC and supermarket Sainsbury's to issue more £5 notes, and feedback from HSBC showed the case for stocking some cash machines with fivers was stronger than previously envisaged, he said. HSBC had stocked 100 of its cash machines in the Midlands and south west of England with more fivers than usual. Meanwhile, Sainsbury's reported that by using more £5 notes it had been able to speed up payment processing at the checkout "In the New Year I hope and expect that we will take these examples to other financial institutions and major retailers to make the case for a change of policy towards issuing £5s," said Mr Bailey. Popular question Speaking to the BBC in February, Mr Bailey said the questions he was asked more than any others were why there were not enough £5 notes in circulation and why they were not good enough quality to last very long. "We are very keen to get £5 notes into circulation," said Mr Bailey, whose signature is printed on every Bank of England note. The move was welcomed by some in service industries, including Chris Haines, a London taxi driver, who said the shortage of fivers had become a real problem. "A lot of London cabbies have to buy a cup of tea or buy a sandwich to get enough fivers in their hands to give out as change," he said. Edited by Chippy - 06 Dec 2009 at 21:33

Bobjr Members Profile Find Members Posts Forum Newbie Joined: 11 Aug 2009 Online Status: Offline Posts: 9	Quote Reply Posted: 10 Dec 2009 at 08:59
	The Bank of England is expected to announce no change in policy when it reveals the outcome of its most recent meeting later. The Bank is likely to hold interest rates at 0.5% and leave its £200bn asset purchase programme unchanged. Last month, the Bank added £25bn to its quantitative easing programme, which involves printing money to buy assets from firms to stimulate the economy. It is expected to wait until the scheme runs out before taking further action. 'Scene set' In November, the central bank said that the fragile economy and the risk of inflation falling below its target of 2% had led it to extend its quantitative easing scheme, which runs out in January. But since then, the economic data has been largely positive. "Last month's decision set the scene until February, which we expect to be the next focal point for UK monetary policy," said Philip Shaw, economist at Investec. "We would be shocked if there were any result other than the Bank rate remaining on hold and the QE target fixed at £200bn." On Wednesday, Chancellor Alistair Darling said the economy would shrink by 4.75% this year and that consumer inflation would rise from 1.5% to about 3% early next year before falling back.

Ko Members Profile Find Members Posts Forum Newbie Joined: 21 Nov 2009 Online Status: Offline Posts: 12	Quote Reply Posted: 18 Dec 2009 at 09:21
	The UK's financial system has become "significantly more stable over the past six months", the Bank of England has reported. It said the situation had improved on the back of its efforts to assist the sector, such as its quantitative easing (QE) programme and 0.5% interest rates. However, it said the commercial banks still had to do more to improve their long-term stability. The Bank is spending £200bn under QE to boost lending in the banking sector. The Bank is using new money to buy assets from banks and other companies, in order to stimulate both bank lending and the wider economy in general.