Bank of England

[HenryTo]

Bank of England stands pat but should hike in next month's meeting, however, as housing prices continue to roar ahead and as price increases become more sticky:

http://www.bloomberg.com/apps/news?pid=20601087&sid=auX5B3X6TSdE&refer=home

[HenryTo]

"Arch dove" Adam Posen to retire from the Bank of England's rate setting committee at the end of this summer--diminishing chances of more QE.

http://www.guardian.co.uk/business/2012/may/18/bank-of-england-posen-to-step-down?newsfeed=true

[rffrydr]

Saudis say $100/Brent....QE still on the horizon.

How many "letters" has the BOE written so far?
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Bank of England to release quarterly inflation report this Wednesday. Likely will not announce more QE unless oil prices decline another 5% to 10%. At this point, it's more about maintaining its long-term inflation-fighting credibility than holding up asset prices.

[HenryTo]

Eyes now on Bank of England for the possibility of more quantitative easing on May 10.

http://www.bloomberg.com/news/2012-04-29/king-faces-10-days-of-angst-on-boe-stimulus-as-recession-festers.html

[HenryTo]

Goldman's Jim O'Neill rumored to be the replacement for Governor Mervyn King.

http://finance.yahoo.com/news/goldmans-jim-oneill-approached-boe-154216495.html

[HenryTo]

Bank of England expected to stand pat at this Thursday's meeting.

http://www.scotsman.com/news/bank-tipped-to-hold-interest-rates-again-1-2209021

[rffrydr]

...and writes a letter apologizing for that every quarter.
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Bridgewater gives the Bank of England two thumbs up.

[HenryTo]

Bank of England backing away from more QE.

http://www.guardian.co.uk/business/2012/feb/29/bnak-of-england-rules-out-quantitative-easing?newsfeed=true

[HenryTo]

More QE on the table: target is 50 billion pounds to be completed by April.

http://online.wsj.com/article/SB10001424052970203824904577212713988258238.html

[HenryTo]

Latest M4 numbers suggest that more QE is on the way in February or March.

http://www.tradingfloor.com/blogs/beecrofts-uk-macro-weekly/uk-m4-figures-imply-further-quantitative-easing--683299304

[rffrydr]

Now talking february...but more of it:

http://ftalphaville.ft.com/blog/2011/11/16/749381/prepare-the-printing-presses/
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Bank of England unexpectedly increases its QE ceiling from 200 to 275 billion pounds:

http://www.bloomberg.com/news/2011-10-06/king-loses-faith-in-europe-as-bank-of-england-responds-to-region-s-virus-.html

[HenryTo]

Bank of England to announce decision later today; but more QE is on the table before the end of this year.

http://www.bloomberg.com/news/2011-10-05/boe-may-move-closer-to-first-emergency-bond-purchases-in-almost-two-years.html

[rffrydr]

More QE coming in Oct. by Citi:

In our view, the article is significant in several respects. First, it demonstrates that the
BoE as a whole clearly believe that QE is a powerful tool that can (if needed) boost
nominal GDP and prevent inflation undershooting. Second, the BoE believe that QE
probably boosts real GDP about as much as inflation: it does not just generate inflation.
Third, this is the first time that the BoE has tried to calibrate the QE impact, thus
creating a rough benchmark against which to judge how much QE that might be
appropriate for a given situation
BE
Fourth, the article argues that QE is a natural
extension of monetary policy when interest rates are zero: QE is not just reserved for
cases of deflation and recession. “In early March 2009, Bank Rate was reduced to ½%,
effectively its lower bound. But, despite this substantial loosening in policy, the MPC
judged that without additional measures nominal spending would be too weak to meet
the 2% CPI inflation target in the medium term. The MPC therefore also announced
that it would begin a programme of large-scale purchases of public and private assets
using central bank money. The aim of the policy was to inject money into the economy
in order to boost nominal spending and thus help achieve the 2% inflation target. “
BE
Of course, the article does not say that QE is imminent. But, we suspect the QB is
stage 1 of a softening-up process to prepare markets for more QE in October or (at the
latest) November. Stage 2 may well come in Wednesday’s MPC minutes, in the form of
extra support for QE. Stage 3 could then come via MPC speeches and comments in
the run-up to the October MPC meeting. The two big questions for the global economy
over the last 12-18 months have been: (1) whether we are in a “Reinhart-Rogoff” world
of balance-sheet retrenchment and extended weakness, or whether the exceptional
monetary stimulus of 2009-10 would prompt a solid recovery; and (2) whether the
seemingly-inevitable sovereign debt restructuring of periphery euro countries could be
limited or delayed sufficiently to avoid a systemic financial crisis. The answer to both
questions seems to be clear and adverse, implying economic weakness and downside
risks for the UK and many other advanced economies. With business surveys, the jobs
market and corporate liquidity all weakening (and fiscal policy hamstrung in the UK),
there is a clear and fairly urgent need for extra monetary stimulus.
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Today is the Tomorrow you worried about Yesterday!