LATEST NEWS: Bank of England Keeps Record-Low Rate on Weak Inflation

The Bank of England kept its key interest rate at a record-low today after persistent weakness in inflation and wage growth reinforced the case for keeping emergency stimulus. The Monetary Policy Committee’s decision also came against a backdrop of a weakening euro-region economy and tensions with Russia over Ukraine. It was the last before Scotland holds an independence referendum that threatens to break the U.K. apart. […]

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LATEST NEWS : Bonds' Liquidity Threat Is Revealed in Derivatives Explosion

The boom in fixed-income derivatives trading is exposing a hidden risk in debt markets around the world: the inability of investors to buy and sell bonds. continue reading at bloomberg.com

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The truth is out: money is just an IOU, and the banks are rolling in it

Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn’t know how banking really works, because if they did, “there’d be a revolution before tomorrow morning”. Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a […]

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Central Banks Split on Stimulus in 2014 as Fed Tapers

The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve — soon to be led byJanet Yellen, confirmed today by the Senate as the next chairman — begins pulling back on its quantitative easing amid stronger U.S. growth, and the Bank of England is trying to cool its housing market. […]

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Sterling to go plastic, Bank of England decides

The Bank of England will announce plans on Wednesday to press ahead with switching to plastic banknotes, starting with the new Sir Winston Churchill £5 note in 2016. The decision on polymer notes will mark the beginning of the end for 320 years of paper notes from the Bank. The move by Threadneedle Street follows Bank governor Mark […]

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BOE Sees Case for Keeping Record-Low Rate Beyond 7% Jobless

Bank of England officials voted unanimously to keep policy unchanged this month and said a record-low interest rate may be needed even after unemployment falls to the threshold set under forward guidance. “There were uncertainties over the durability of the recovery,” the Monetary Policy Committee said in the minutes of its Nov. 6-7 meeting, published in London today. “With the […]

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Central Banks Drop Tightening Talk as Easy Money Goes On

The Bank of Canada’s dropping of language about the need for future interest-rate increases and today’s decisions by central banks in Norway, Sweden and the Philippines to leave their rates on hold unite them with counterparts in reinforcing rather than retracting loose monetary policy. The Federal Reserve delayed a pullback in asset purchases, while emerging markets from Hungary to Chile cut […]

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It is the regulators who now pose the biggest threats to financial stability

“Interest rate rigging, customer mis-selling, sanctions busting, money laundering, and suggestions of bribery have cemented the pariah status they earned – so to speak – after triggering the deepest recession since the Great Depression. Labour plans to whack another £800m tax on the industry. The Tories have been happy to raise the bank levy every […]

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BOE Leaves Policy Unchanged as Carney’s Guidance Assessed

“Bank of England officials left their bond-buying program unchanged today as they assessed the impact of Governor Mark Carney’s forward guidance policy to keep interest rates low amid a strengthening economic recovery. The Monetary Policy Committee, after meeting for the first time since introducing guidance last month, held the target for asset purchases at 375 […]

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Bank of England Ready to Inject More Stimulus, Carney Says

“Bank of England Gov. Mark Carney, in his debut speech on Wednesday, announced new measures to boost lending in the U.K. and said the central bank is ready to step in with fresh stimulus if the country’s economic recovery falters. Once again, however, his message seems to have fallen on deaf ears: U.K. government bonds […]

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