Bank of England

The European Central Bank and the Bank of England activated a standing currency swap line, stepping up their preparations for Britain’s possible departure from the EU later this month. Under […]

The Bank of England (BOE) held interest rates steady on Thursday, with the U.K.’s economic outlook highly uncertain less than 100 days before the country leaves the European Union. As […]

Andy Haldane, the Bank of England’s chief economist, warned that robots and artificial intelligence could potentially make a huge number of UK jobs obsolete, as thousands of workers could face […]

The Bank has already raised expectations of a hike once before, with clear signals that it would make a move in May. However, the hawkish rhetoric was undercut by a […]

The Bank of England raised the chances of an August rate rise after its chief economist joined two other members of its rate-setting monetary policy committee voting for an immediate […]

The Bank of England will allow European banks to continue selling their services in the UK without having to create expensive subsidiaries after Brexit, even if no divorce deal is struck between London and Brussels, the BBC reported.

The Bank of England will not force European-based investment banks to ringfence their capital and liquidity. It will mean EU banks operating through UK branches can continue without creating subsidiaries – where they are compelled to hold their own substantial reserves in the event of a financial shock, essentially becoming UK companies.

Bank of England staff have voted to hold their first strike in more than 50 years in a push for higher pay, a union said on Monday, adding to pressure for an end to tight controls on public sector wages in Britain.

Unite, Britain’s biggest union, said maintenance and security staff at the 323-year-old institution would strike for four days from July 31 after they were awarded a 1 percent pay rise: “Unite has informed the Bank of England that its members working in the maintenance, parlours and security departments will be taking four days of strike action on July 31, August 1, 2 and 3 2017,” it said in a statement. That period coincides with the bank’s next monetary policy meeting.

From the growth point of view, Brexit can affect the economy in two ways. In the near term, uncertainty from Brexit and rising inflation from the reduction in Sterling trade since the vote could cause a modest demand-side shock. But that effect has been much smaller than expected. In fact, the economy has outperformed the non-Brexit scenarios. Of course, we do not know how the economy would have performed had the UK not voted to leave. That seems to be an absence of the short-term demand-side shock. I am confident that the UK can continue to enjoy a broad-base expansion over the next couple of years. I see probably 2% real GDP growth this year followed by 1.7% next year.