The Bank of England is set for only modest interest rate tightening in the coming months to deal with high inflation fuelled by supply chain backlogs, according to a senior official.
Local authorities in the UK borrowed just £130m from the Public Works Loan Board in January, as the cost of borrowing leapt following December's Bank of England interest rate rise.
The Bank of England is widely expected to increase interest rates for the second time in two months this week as it continues to try to get inflation under control.
The Bank of England has raised the cost of borrowing for the first time since the onset of Covid-19 despite fears of the Omicron variant slowing the economy, citing worries about inflation.
The Bank of England must not delay raising interest rates despite the economic risks around the Omicron variant of Covid-19, the International Monetary Fund has said.
The Bank of England’s base rate will remain at its all-time low of 0.1% after the Monetary Policy Committee voted to hold fire on an increase – despite predicting inflation will reach 5% next Spring.
Inflation could run above the Bank of England 2% target going into 2023, as supply shortages led to CPI spiking this year, according to ratings agency Standard and Poor’s.
The Bank of England has signalled it could tighten its monetary policy slightly faster than had been expected as the recovery from Covid-19 gets underway and inflation continues to run above its 2%...
The government has failed to budget for £30bn of additional costs resulting from Covid-19 over the next three years, according to the Office for Budget Responsibility.
The Bank of England has written to banks asking them to take measures to prepare for any future decision to cut interest rates below zero later this year.
The UK is unlikely to see negative interest rates “imminently”, according to David Ramsden, deputy governor for markets and banking at the Bank of England.
The Bank of England has outlined plans to explore how negative interest rates could be implemented for the first time, to help the UK’s economic recovery from Covid-19.
The Bank of England will continue to review the potential of negative interest rates, to help stimulate the UK’s economic recovery from Covid-19, it said today.
Savings made by private sector firms and employees during lockdown could help pay for tax rises to cover the repayment of government Covid-19 debt, according to the National Institute of Economic and...
Bank of England chief economist Andy Haldane has suggested negative interest rates could be implemented if further negative shocks are felt in the economy.
Local authorities are struggling to repay loans as a result of a “pernicious” rule change by the Public Works Loan Board, a financial risk analysis website has said.
Facts and figures from April 2016’s Public Finance magazine, including town vs country priorities, interest rates, Northern Powerhouse prospects and Danish asylum seizures
