Posts Tagged 'bank of England'

Tory Banks Policy

Abolish the FSA, Transfer powers to the BofE is the synopsis.

DC introduces Tory Bank Policy White Paper
DC introduces Tory Bank Policy White Paper

There is no doubt that the tripartite system failed. Too many macro decisions fell in the gaps in between and the idea of panic in the air over the three week period was palpable. The idea of a financial policy committee is a good macro decisioning tool and its position within the BofE seems a sensible one.

Overall, the Tory Bank Policy looks stable, however the devil will be in the detail. I would like to see an explanation of what the Treasury’s role in this will be in the future. Outsourcing financial overseeing should not lead to a dereliction of duty by the government of the day.

Bank of England Forecast

It’s clear that there are so many indicators that the BoE forecast is really just trying to stick the pin on the donkey.
A restriction of growth of 4.5% this year does seem on the dovish side but we shall see. Any upturn will surely be temporary as there needs to be an unwinding of our leveraged position by banks, businesses and households.

Bank of England Cuts Rate to 1.5%

The answer has to be why?

Will the 0.5% encourage business or mortgage lending any further? Will mortgage holders find their payments signicantly lower? Will credit card holders find their painful repayments eased. The link between monetary activity and bank lending is no more. A political gesture made by those without the tools, brains or balls to remedy the situation.


July 2017
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