Tag Archives: Bank of England

In the years following the global financial crisis, the world’s leading economies have found relief through aggressive monetary policy. But with interest rates slashed to historic lows and central bank balance sheets significantly larger as a percent of GDP than they were before the financial crisis, policymakers will need alternatives to interest rate cuts and conventional quantitative easing when the next recession comes along. U.S. central bankers have cut real interest rates between...

It never ceases to amaze how vastly different the investment styles of gold paper vs physical traders are: while we have documented previously how the latter tend to buy progressively more the lower the price (as traditional “buy low, buy more lower” investing would suggest), “investors” in gold paper-derivatives such as ETFs and ETPs are quite the opposite: in fact, they rarely buy until someone else is buying and...

“Some market and economic volatility can be expected as this process unfolds,” Carney said in a televised statement in London after the referendum result. His comments followed Prime Minister David Cameron’s announcement that he will step down this year, which will inject political uncertainty into an already volatile period. His full announcement is below and his statement can be found here: [embedded content]...

There was a reason why we warned readers two days ago that "The World's Central Bankers Are Gathering At The BIS' Basel Tower Ahead Of The Brexit Result": simply enough, it was to facilitate an immediate response when a worst-cased Brexit vote hit. And that is precisely what has happened today in the aftermath of the historic British decision to exit the EU. It started, as one would expect, with Mark Carney who said the Bank of England is ready to pump billions of pounds into the financial...

A progress update by the Bank of England describes the Bank’s intention, over time, to extend direct access to RTGS to non-bank Payment Service Providers (firms granted the status of E-Money Institutions or Payment Institutions in the UK), collectively known as PSPs. By extending RTGS access, our objective is to increase competition and innovation in the market for payment services.

Submitted by Danielle DiMartino Booth via DiMartinoBooth.com, “Kings have long arms, many ears, and many eyes.” So read an English proverb dated back to the year of our Lord 1539. And thus was born an idiom that today translates to the very familiar Long Arm of the Law. It stands to reason that such a warning was born of feudal times when omnipotent and seemingly omnipresent monarchs personified the law, possessed...

What happens on the 18th floor of the main tower at Centralbahnplatz 2 in Basel, stays on the 18th floor of the main tower at Centralbahnplatz 2. That’s because this is where every other month the world’s central bankers meet in complete secrecy – no minutes are ever kept – to discuss the global economy completely unfettered of any concerns of accountability, and decide on what monetary policies they will implement to...

As Brexit appears to gathering pace among British voters, Bloomberg Briefs interviews Hung Tan, executive managing director at the Institute of International Finance in Washington, DC., to understand the global impact of a decision by Britain to leave The EU…    Q: What would happen if Britain voted to leave the EU?  A: It is not Lehman in the short term in terms of markets being in a panic or chaotic mood, because the...

Within the world of central bank and government gold reserves, there is often an assumption that these gold holdings consist entirely of gold bullion bars. While this is true in some cases, it is not the fully story because many central banks and governments, such as the US, France, Italy, Switzerland, the UK and Venezuela, all hold an element of gold bullion coins as part of their official monetary gold reserves. These...

The German Bund chart is very important for us, because the Swiss franc is negatively correlated to German government bond yields. The lower Bund yields, the stronger the Swiss Franc. When European governments and the ECB are ready to pay higher interest rates, then CHF depreciates. 10-year Gilt yield, Close on 06/12 Whether it is due to rising, or receding, fears of Brexit, earlier today UK Gilts joined the global...