Bank Of England

Inflation is set to drop sharply from the current 10.4% level in the coming months due to lower energy prices and base effects, as last year's sharp price jumps are not repeated

Another major development in the crypto world during the week was the US Securities and Exchange Commission's 'Wells notice' to crypto exchange Coinbase

Futures imply around a 50% chance of one more quarter-point hike, in contrast to Europe where markets see around 50 bps of further tightening

BoE announces quarter-point rate hike to 4.25%; MPC says it expects inflation to fall faster

Britain's inflation rate rose for the first time in four months in February, surprising an analysts and increasing pressure on the Bank of England to raise interest rates at its meeting on Thursday. The consumer price index jumped to 10.4 per cent in the 12 months through February from 10.1 per cent the previous month, as high energy prices continued to squeeze household budgets, the Office for National Statistics said Wednesday. While economists expect prices to drop rapidly later this year, inflation is more than five times higher than the Bank of England's 2 per cent target. The central bank will weigh the need to control inflation against concerns about the fallout from global banking troubles when it decides whether to raise interest rates on Thursday. The bank has approved 10 consecutive rate increases since December 2021, pushing its key bank rate to 4 per cent. Michael Hewson, chief analyst at CMC Markets UK, said he expects the Bank of England to raise rates by at least a

The rate-increase cycle, which started in May 2022, raising the policy rate from 4 to 6.25 per cent to fight entrenched inflation, is nearing its end

Previously the BoE had forecast 2023 inflation at around 5%

The Bank of England is expected to raise interest rates by as much as half a percentage point Thursday as it seeks to tame the double-digit inflation fuelling a cost-of-living crisis, public-sector strikes and fears of recession. The move would push the UK's key rate to 4 per cent. Economists suggest this may be the last big rate increase for Britain's central bank, which has approved 10 consecutive hikes since a post-pandemic surge in the world economy and Russia's war in Ukraine drove inflation to 40-year highs. The US Federal Reserve has already begun tapering its response, boosting its key rate by just a quarter-point on Wednesday. The European Central Bank, meanwhile, is expected to go big again, with a half-point hike on Thursday. Optimism grew that rate increases may begin to tail off after UK inflation eased for a second straight month to 10.5 per cent in December, down from a peak of 11.1 per cent in October. That's still far higher than in the US and the 20-country eurozon

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ESMA under pressure after de-recognising in October six Indian clearinghouses including the CCIL

With this move, Japanese bank branches in India can now use CCIL and experience better operational flexibility and lower capital requirement

Foreign lenders, RBI in talks to find satisfactory alternative mechanisms

The RBI is continuously engaged with ESMA and other regulators to arrive at a mutually acceptable arrangement, which recognizes the territorial independence of the host regulator, said central bank

Discussions with foreign regulators positive

The notes are expected to enter circulation in mid-2024

Britain's central bank on Thursday raised its key interest rate again but toned down the pace as inflation shows signs of easing, mirroring action by the US Federal Reserve and ahead of an anticipated identical move by European policymakers. The Bank of England raised the benchmark rate by half a percentage point, to 3.5 per cent, the highest level in 14 years. It was the ninth consecutive increase since December 2021 and follows last month's outsized three-quarter point hike, the biggest in 30 years. This time, officials opted for less aggressive action after data this week showed inflation slipped from a 41-year high, but they warned that more hikes are likely to come. The bank last month forecast a prolonged recession in the UK and consumer price inflation staying very high in the near term. Should that scenario play out, further rate increases may be required for a sustainable return of inflation" to its 2 per cent target, bank's Monetary Policy Committee said. There are ...

British inflation fell more sharply than expected in November to 10.7% from October's 41-year high of 11.1%, according to official consumer prices data

More than 50 central banks have gone for 75-bp increases, with over 275 rate hikes this year

European regulators' decision affects more market segments than US norms

Inflation pressures in the UK economy showed only limited signs of abating in November, with companies expecting to raise prices by 5.7% in the coming 12 months