tinyfav.com
tinyfav.com October 22, 2017


Bank of England votes to hold rates,cut growth forecasts

06 August 2017, 01:37 | Melanie Burgess

Sterling hits 10 month high

BoE 'Super Thursday' looms as sterling hits 10-month high of $1.32

United Kingdom interest rates may have to go up by more than the market expects in the future, Bank of England deputy governor Ben Broadbent has told the BBC. He also pointed out that interest rates were lower now than they were then. "Consequently the task of determining just what effect Brexit had on the United Kingdom economy will mostly fall on the shoulders of tomorrow's historians, rather than today's economists".

The MPC voted 6-2, with the committee one member short, for leaving interest rates unchanged, a less interventionist stance than the 5-3 vote at the June meeting.

And it expects GDP growth to fall back to 1.6 percent next year, down slightly on the previous expectation of 1.7-percent expansion.

Britain's central bank has cut it forecasts for the United Kingdom economy, saying it expects growth to remain "sluggish" over Brexit uncertainty.

CPI inflation was 2.6 percent in June, having risen from 0.5 percent in May a year ago following the fall in sterling against other currencies.

At its simplest level, the policy dilemma facing Britain's central bank is that it must balance surging inflation brought on by the weakened pound since the referendum with the slowdown in the economy, dwindling consumer spending, and declining inward investment.

The cost of debt and borrowing is set to rise faster than markets are now expecting, Ben Broadbent said.

Following the bank's announcement, sterling dropped nearly 1 per cent against the United States dollar to $1.31.

'Bomb Italian ships!' Shock as Libyan general THREATENS Italy over migrant rules
Italy announced the operation last week, saying it had been requested by Libya's UN-backed government. The Italian naval vessel, the Comandante Borsini , entered Libyan waters within hours of the vote.

Jordan ranks LeBron behind Kobe
James has closed the gap, but three is still less than five, so perhaps it's no surprise that Jordan hasn't changed his mind. No. "There's something about five that beats three", Jordan said, while shrugging his shoulders.

Woman who encouraged boyfriend to kill himself faces 20 years in prison
Roy eventually acquiesced, and on July 12, 2014, he took his own life in a Fairhaven Kmart parking lot by filling his truck with deadly carbon monoxide gas.

But the Bank appeared to suggest that households and businesses should not expect borrowing costs to stay at their record low for much longer.

Governor of the Bank of England Mark Carney said that the consequences of uncertainties regarding Brexit are becoming apparent as lacking clarity of future relations with the European Union is having impact on some companies' decisions to enter new markets or make investments.

He said the objective of the MPC was not "the path of interest rates but the stability of inflation in the medium term and subject to that the stability of the economy".

On the other hand, if there are still three policymakers willing to vote for a hike, Sterling will soar and will recover against the Euro for the rest of the week.

While the bank voted - at six votes to two - to keep interest rates at 0.25pc (see the leader in this week's issue of The Spectator for why this isn't such a great idea), its Inflation Report did bear better-than-expected news.

Preliminary report from the Ministry of Health, Labor and Welfare showed that Japan's total labor cash earnings decreased for the first time in thirteen months in June, defying economists' forecast for a further rise.

The BoE lowered by only a fraction its forecasts for inflation which it now saw at just under 2.6 per cent in a year's time after peaking at around 3 per cent in October.



Other News

Trending Now

Bashing Trump Is Not Working For Flake In His Home State
It is highly likely that the president would face a challenge from Republicans in the 2020 USA presidential election. Meanwhile, 26% said they were more likely to vote for him because of the vote, and 20% said it made no difference.

Bill Ackman Pushing for Board Seats to Control ADP
Pershing Square was reportedly offered 11.10 to 11.40 each for shares that, at their late 2015 high, traded at 263.81. Friday's statement comes after Bloomberg first reported last week that Ackman had built a stake in the firm.

Authorities arrest Northwestern professor, Oxford employee wanted in Chicago slaying of hairdresser
Lake Geneva police say a person handed the sum in cash to a library employee, but detectives admit they do not know why. Warren, a Somerville College resident at Oxford University in England, was taken to the San Francisco County Jail.

Post-Scaramucci White House, why Trump is fighting Republicans
Because he suspects Priebus for leaking information about his financial disclosure form to a reporter of Politico. He wrote: "POTUS is the best golfer to serve as President".

Families with children becoming less common in BC
More young adults are also living alone or with roommates, and fewer have started their own families than in the past. The percentages were still higher in Sweden (36.2% in 2011), Norway (40.0% in 2012) and Germany (41.4% in 2015).

Rahul Gandhi To Visit Flood-Hit Banaskantha In Gujarat Tomorrow
The Congress is likely to raise the issue during the ongoing monsoon session of Parliament and dem-and the government to explain the security lapse.

'Kevin Can Wait' to kill off Erinn Hayes' character, CBS reveals
Remini and James have a past working together on set and starred alongside each other from 1998 to 2006 on King of Queens . In the new season, James' character will join a new security firm run by Remini.

Prisoners Escape Alabama Jail Using Peanut Butter
The fugitives were between 18 and 30, facing charges ranging from disorderly conduct to attempted murder. The sheriff did acknowledge the jail needed improvements, including more monitors and cameras.

"America First Does Not Mean America Alone" — Pence in Georgia
Pence will later travel to Montenegro, where he will join leaders from across the Western Balkans for an Adriatic Charter Summit. "The President has made clear, and as my presence here today demonstrates, America first does not mean America alone ", he said.

North Korea showing 'unprecedented levels' of submarine activity
That activity caused US and South Korean forces to slightly raise their alert level, according to one official. We handle everything", Trump said after a reporter asked him about his strategy.