Category Archives:

Bank of England

Will the Bank of England join the loose money bandwagon?

As the year of the 325th anniversary of the Bank of England’s foundation, and as the month of one of the Bank’s more important rate-setting decisions since 2008, September provides a congruous occasion on which to reflect on the history of the BoE and consider what the future holds for it. Founded in 1694 as a private bank to the government, it was in 1998 that the BoE was granted independence…

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Is UK austerity over? Cue the Autumn budget

This week’s Budget and Bank of England meetings may shed some light on a key question for investors and millions of taxpayers: After eight years of fiscal tightening, is austerity over and will the economic burden shift from monetary to fiscal policy? I wouldn’t hold my breath – something which may cheer gilt investors, at least for now. Let’s see why:

In her recent Conservative Party conferenc…

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US & UK Inflation: Goldilocks and the bear?

After a decade dominated by extraordinary monetary stimulus that has kept interest rates and consumer prices at bay, the dog that didn’t bark is finally showing signs of life: inflation. As seen on the chart, both US and UK wage inflation have spiked in a tightening labour market – an old textbook recipe for further price increases to come. However, one has to look beyond the headlines to depic…

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