"Potential disruption to the forex markets can be serious"
Dialogue on clearing houses come after CCIL derecognition by ESMA, BoE
Fresh clearing options came up in discussions with RBI, banks in touch with offshore regulators
Britain's economy shrank in the three months to September, official statistics said on Friday, as forecasters warned of many months of contraction to come. The Office for National Statistics said gross domestic product fell by 0.2 per cent between July and September, a smaller-than-expected contraction that nevertheless is seen to signal the start of a long recession. GDP shrank by 0.6 per cent in September, and by 0.1 per cent in August, the statistics office said. It said a decline in manufacturing output and an extra holiday to mark the death of Queen Elizabeth II, which contributed to a notable fall in retail, were behind the decline. It said the UK economy is now 0.2 per cent smaller than in February 2020, just before the COVID-19 pandemic shut down big chunks of the economy for months. Britain's economy, like that of many other countries, is struggling as Russia's invasion of Ukraine has driven up food and energy costs, pushing consumer price inflation to 40-year highs. The
Five former Bank of England rate setters have attacked their old employer for going soft on inflation despite hiking borrowing costs last Thurday to a 14-year high
Bank of England the latest to push back against hawkish bets; Fed seen as most aggressive, driving record gains for dollar
A 0.75 per cent increase, the latest in a series of eight interest rate rises since last year, would not be enough to guarantee victory in the war against double-digit inflation: Bank of England
Central bank raises bank rate to 3% from 2.25%
Synchronised rate hikes by large central banks would increase financial stability risks
The Bank of England has announced its biggest interest rate increase in three decades as it tries to beat back stubbornly high inflation fuelled by Russia's invasion of Ukraine and the disastrous economic policies of former Prime Minister Liz Truss. The bank boosted its key rate by three-quarters of a percentage point Thursday, to 3%, after consumer price inflation returned to a 40-year high in September. The aggressive move to prevent inflation from becoming embedded in the economy was in line with market expectations after a more cautious half-point increase six weeks ago. The interest rate decision is the first since Truss' government announced 45 billion pounds ($52 billion) of unfunded tax cuts that sparked turmoil on financial markets, pushed up mortgage costs and forced Truss from office after just six weeks. Her successor, Rishi Sunak, has warned of spending cuts and tax increases as he seeks to undo the damage and show that Britain is committed to paying its bills. The ra
The Fed is widely expected to raise its benchmark rate by 75 basis points (bps) on Wednesday, its fourth such increase in a row
CLOSING BELL: The Financial Services, IT, Pharma, Auto, and Consumer Durable indices gained over 1 per cent each, while others added up to 1 per cent
The new premier, Sunak's economic policy is set to face scrutiny as the Bank of England delivers what could be its biggest interest-rate hike in more than 30 years
Rising borrowing costs are part of a cost of living crisis hammering consumer spending as Sunak becomes Britain's third PM in less than two months
Financial Times said the BoE was likely to push back the start of its quantitative tightening gilt sales from a scheduled date of Oct 31, having already delayed it from Oct 6
The pound sank against the dollar early on Wednesday after the Bank of England governor confirmed the bank won't extend an emergency debt-buying plan introduced last month to stabilise financial markets. Andrew Bailey said the programme will end on Friday as scheduled. The pound fell by almost 1 per cent to just below USD 1.10 after Bailey spoke, before rallying slightly. After the government's September mini-budget the currency hit a record low of USD 1.03. My message to the (pension) funds involved you've got three days left now. You have got to get this done, he said. Part of the essence of a financial stability intervention is that it is clearly temporary. The central bank stepped in after the British government on September 23 announced plans for 45 billion pounds (USD 50 billion) in tax cuts without saying how it would pay for them. The announcement spooked financial markets and sent the pound plunging to a record low against the dollar. The Bank of England intervened to pr
European stocks held steady in early trading on Wednesday, while sterling recovered after hitting a 13-day low
The Bank of England on Tuesday expanded its emergency effort to quash upheaval on financial markets unleashed by the government's plan to slash taxes, saying fluctuations in bond prices posed a material risk to Britain's fiscal stability. The UK central bank said it will now buy inflation-linked securities which offer protection from inflation as well as conventional government bonds as it seeks to restore orderly conditions in the market. Purchases will total up to 10 billion pounds (USD 11 billion) a day split evenly between both types of bonds, and the program will end Friday as originally planned, the bank said in a statement. Analysts say pension funds lobbied the central bank to extend the programme by two weeks, but Bank of England Governor Andrew Bailey stuck to the timeline in an appearance at the annual meeting of the Institute of International Finance in Washington. He said portfolio managers have three days to rebalance their positions. The bank broadened the program
There was a modest respite for Britain's battered bond market after the Bank of England said it would start purchasing inflation-linked debt
Bank of England says will buy index-linked gilts, a move that represents new headache for UK PM Truss; bank warns of "material risk" to financial stability