BoE Chief Bailey Says Markets Underestimating Persistence Of Inflation

RTTNews | 536日前

(RTTNews) - Bank of England Governor Andrew Bailey said that financial markets are putting too much weight on the current data releases and underestimates the persistence of inflation. At the Treasury Select Committee hearing on Tuesday, Bailey said the decline in inflation was good news.

Inflation will end the year a bit lower than the central bank estimated, the BoE Governor told lawmakers.

However, Bailey said the central bank is concerned about the potential persistence of inflation in the course of its journey down to the 2 percent target.

Regarding suggestions on raising the inflation target to 3 percent, Bailey said it is a very bad argument. He asserted that the target should remain at 2 percent.

At the November policy meeting, the Monetary Policy Committee decided to maintain the bank rate at 5.25 percent in a split vote. Policymakers Jonathan Haskel, Catherine Mann and Megan Greene had called for a quarter point rate hike.

At the hearing, MPC external member Catherine Mann said tighter monetary policy will be needed both to reduce inflation itself as well as to align inflation expectations with the remit.

"While I acknowledge that the monetary policy stance has started becoming restrictive, it is so only recently and not by so much," Mann added.

MPC member Dave Ramsden said, "Given my assessment of the outlook and the risks I would not rule out having to raise bank rate further in the future but I will continue to make my decisions on a meeting to meeting basis."

タグ: GBP

Bank Of England Cuts Key Rate By 25 Bps Amid Trade Tariff Concerns

The Bank of England reduced its interest rate by a quarter-point on Thursday, as policymakers judged that higher trade tariffs warrant such action amid slowing inflation. In a three-way split, the Monetary Policy Committee, governed by Andrew Bailey, lowered the bank rate to 4.25 percent. This was the fourth such reduction since last August.

RTTNews | 2日前

UK House Prices Rise For First Time In 3 Months

UK house prices rose moderately in April despite an end to the stamp duty holiday and worsening economic outlook, data published by mortgage lender Halifax revealed on Thursday. House prices climbed 0.3 percent on a monthly basis in April after falling for two straight months. On a yearly basis, growth in house prices accelerated to 3.2 percent from 2.9 percent in the previous month.

RTTNews | 2日前

UK Construction Sector Continues To Shrink

The UK construction activity continued to contract in April as business uncertainty and concerns about economic outlook damped client demand, survey data from S&P Global showed on Wednesday. The construction Purchasing Managers' Index rose unexpectedly to 46.6 in April from 46.4 in March. This was the slowest decline in output levels for three months.

RTTNews | 3日前

UK Car Sales Drop 10.4% In April As Higher Taxes Hurt - SMMT

New car registrations in the U.K. decreased in April mainly due to customers making purchases early to avoid higher taxes that came into effect at the start of the month, though electric car sales continued to increase, monthly data from the Society of Motor Manufacturers and Traders showed on Tuesday.

RTTNews | 4日前

UK Mortgage Approvals Lowest In 8 Months

UK mortgage approvals decreased to the lowest level in eight months in March despite home buyers rushing to complete the transactions ahead of the rise in stamp duty, official data revealed on Thursday. Mortgage approvals decreased 800 to 64,309 in March, the Bank of England said. Approvals for house purchases, an indicator of future borrowing, decreased for the third straight month.

RTTNews | 9日前

UK House Prices Fall More Than Expected

UK house price declined more than expected in April following the end of stamp duty holidays, data from the Nationwide Building Society showed Wednesday. House prices logged a monthly drop of 0.6 percent after remaining flat in March. The decline was worse than economists' forecast of 0.1 percent. On a yearly basis, house price growth eased to 3.4 percent from 3.9 percent in the previous month.

RTTNews | 10日前

UK Retail Sales Rise; Consumer Sentiment Weakens

UK retail sales grew unexpectedly in March as good weather boosted demand for clothing and garden supplies, but U.S. President Donald Trump's tariff threats and concerns of higher inflation dampened consumer sentiment, data showed Friday. Retail sales grew 0.4 percent on a monthly basis, confounding expectations for a decline of 0.3 percent.

RTTNews | 15日前

UK Auto Production Surges On Foreign Demand

UK auto production logged a double-digit growth in March but the expansion was not sufficient to offset the first quarter decline, the Society of Motor Manufacturers and Traders, or SMMT, said Friday. Production of cars and commercial vehicles advanced 17.1 percent year-on-year in March. Production for home market climbed 4.7 percent and that for foreign market surged 23.4 percent.

RTTNews | 15日前

EURUSD	1.12578	GBPUSD	1.33126	AUDUSD	0.64134
USDJPY	145.282	USDCAD	1.39279	USDCHF	0.83115

Advertisement

BoE Chief Bailey Says Markets Underestimating Persistence Of Inflation