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Bad Brexit Scenario Mars All-Bank Pass in BOE’s Stress Tests

LONDON (Capital Markets in Africa) – British banks may have unanimously passed Bank of England stress tests, but that clean bill of health came with concern about a messy Brexit, courtesy of Governor Mark Carney. The central bank told lenders to add another 6 billion pounds ($8 billion) to their capital buffers and may increase their requirements again next year because it’s worried that the combination of a no-deal Brexit without a transition period and a global…

United Kingdom Manufacturing Sums Up Interest-Rate Dilemma for the BOE

Posted on by The Editorial Team

LONDON (Capital Markets in Africa) – For a picture book example of the dilemma facing Bank of England policy makers, look no further than the U.K. manufacturing industry. On the downside for the economy, demand and confidence at factories is declining and investment is weakening, according to a survey from the Confederation of British Industry. But, in a sign of a potential squeeze that could intensify price pressures, the percentage of firms operating below capacity is the…

United Kingdom Lawmakers Bemoan BOE’s Lack of Diversity in Top Roles

Posted on by The Editorial Team

LONDON (Capital Markets in Africa) – A lack of diversity at the top levels of the Bank of England has drawn the ire of U.K. lawmakers. Nicky Morgan said the Treasury Committee that she chairs is concerned about imbalances at the BOE’s most senior levels. Silvana Tenreyro, who appeared before the legislators on Tuesday for her appointment hearing, is the only woman on the nine-member Monetary Policy Committee that sets interest rates. The Financial Policy Committee, responsible for financial stability,…

BOE’s November Rate Hike Isn’t Set in Stone After Crunch Week

Posted on by The Editorial Team

LONDON (Capital Markets in Africa) – After a crucial week for the Bank of England, a November interest-rate increase no longer looks like a sure thing. Inflation may have hit 3 percent, but for some policymakers at the central bank, the domestic price pressures that justify raising now aren’t there. That view was backed up by data Wednesday that showed wage growth slowing. Dave Ramsden, the Monetary Policy Committee’s newest member, had said a day earlier that…

Carney’s Countdown to BOE Rate Hike Faces Make or Break Week

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Mark Carney is heading into a crucial week in the countdown to a possible Bank of England rate increase in early November. After the International Monetary Fund meetings where most central bankers fretted about weak inflation even amid robust global growth, the governor returns to an economy that’s almost the mirror opposite. While Brexit is weighing on U.K. businesses, price growth is above target — something for lawmakers to press him on…

Bank of England Governor’s Brexit Worries Mean BOE Chief in No Rush to Tighten

Posted on by The Editorial Team

LONDON (Capital Markets in Africa) – Mark Carney is still worried about the impact of Brexit on the economy and signalled he won’t be rushing to raise interest rates anytime soon. In his first major comments in six weeks, the Bank of England governor addressed weaknesses in the economy, saying that domestic inflation pressures remain subdued and wage growth is anemic. He also highlighted the level of uncertainty surrounding the U.K.’s talks to exit the European Union, saying he…