Tag Archives | Bank of England

Dollars.jpg

A fistful of dollars

The US Federal Reserve used just to manage monetary policy for the 12 ‘districts’ of the USA. But now, it is going global. First, it opened unlimited “swap lines” with other G7 countries through the European Central Bank, the Bank of England and the Bank of Japan, as well as the Swiss National Bank. Then, […]

Continue Reading

Europe, N America, China cut interest rates

The blog welcomes the co-ordinated action by central banks, including the US Federal Reserve, European Central Bank, and the Banks of England and China, in cutting interest rates. Anything that suggests policymakers are starting to get their act together is good news. But as the blog has argued since February, cutting interest rates in today’s […]

Continue Reading
OilJul08.jpg

Bank of England warns on inflation

Andrew Sentance of the Bank of England has issued a very clear analysis of current oil and commodity price movements. It rejects the view that these have been primarily caused by speculators. Instead, it points to increasing demand, and lack of supply, as the main causes of today’s higher prices. The slide above sums up […]

Continue Reading
signpost.jpg

High inflation, or global downturn?

Central bankers had it easy over the past decade. Now they are going to have to earn their money. Inflation is rising rapidly, and growth rates are falling. But unfortunately, as I first noted back in March, they still seem to have differing ideas about what policies will best counter these twin challenges.

Continue Reading

Central bankers recognise a ‘bubble’

For years, former US Fed Chairman Alan Greenspan said that it was impossible to recognise an ‘asset bubble’ until after it had burst. Thus the dot-com bubble, and the US housing bubble, were able to grow without central bank interference. Now however, Fed Governor Frederic Mishkin has broken ranks and provided this detailed description of […]

Continue Reading
housingboe.jpg

The graph the Bank of England didn’t publish

Every 3 months, the Bank of England publishes its Inflation Report. This is packed with useful charts and commentary on just about every aspect of the world economy. It also normally includes the Bank’s own indicator of where UK house prices are headed. This is based on surveys by the Royal Institute of Chartered Surveyors, […]

Continue Reading

Interesting Quotes (4)

Back in August, as the credit crisis began, I tried to capture the heart of the issues it raised in a few quotes. Many people now believe that it is coming to an end. I am not so sure, and fear it may, in fact, be simply moving from Wall Street to Main Street. If […]

Continue Reading

‘Largest ever peacetime liquidity crisis’ says Bank of England

Its not often that one gets clear statements from central bankers. Today’s comment from the Bank of England’s Deputy Governor that the credit crunch was ‘an accident waiting to happen’ is truly remarkable for its clarity. She also gives the best one sentence summary that I have seen on the background to today’s credit crunch. […]

Continue Reading
BoEFeb08.bmp

UK banks follow US lead in tightening credit

The Bank of England’s quarterly survey of corporate credit conditions, published today, shows that companies are finding it harder to get credit, and that rates are rising. This is in spite of the massive liquidity injections made by the Bank over the past 6 months, and its 0.5% interest rate cut. The Bank says that […]

Continue Reading
house%20dec.bmp

USA adds $746bn to support housing

Housing, as we know, is an absolutely key market for the chemical industry, both directly and indirectly. Directly, each new house accounts for $16k of chemical demand, whilst indirectly, years of rising western house prices has allowed consumers to cash out their gains to spend on Asian imports. Now this virtuous circle has turned with […]

Continue Reading