United Kingdom
Sovereign debt in default fell by 1% in 2023 – BoC study
Research finds shift in lending away from Paris Club creditors towards China
Major UK banks better placed for resolution, says BoE
Central bank publishes new assessment on institutions’ resolvability in the event of failure
Bank of England cuts rates for first time since 2020
MPC votes for 25bp reduction in split decision after Fed opts to hold
Innovate to defend status of central bank money, says BoE
Bank “exploring options” to widen access to settlement
Hedge funds and dealers have outsized price impact – BoE paper
Mutual funds have smaller impact so may not play central role in fire sales, authors say
Firms’ prices respond rapidly to CPI data – BoE study
Companies are more sensitive to rises in inflation than to falls
BoE to open non-bank emergency facility in Q4
Central bank working “at pace” to deliver facility, as it publishes provisional design
Long-term repo set for bigger role in BoE operations
Executive director Victoria Saporta outlines “major change in operating practice”
Macro-prudential announcements cut systemic risk, paper finds
BoE paper says unexpected changes that tighten policy are effective
BoE’s high-value payment system hit by ‘global payments issue’
Settlement of some payments delayed after problem originating with Swift; ECB delays closure of Target systems
Banks not fully prepared for repo risks – BoE’s Benjamin
Margining practices fail to account for “jumps to illiquidity”, executive director says
BoE economists hunt ‘driving forces’ of forecast errors
“Systematic” study of mistakes finds wage growth and expectations could have been modelled better
BoE should hold rates until pressures have eased, Haskel says
Changes to labour market estimates helped shift policy decisions, MPC member says
New NBER research sheds light on ‘cheapflation’
Savings from price discounts partially offset by price hikes for cheaper products
Bank of England holds rates as services inflation lingers
“We need to be sure that inflation will stay low,” governor Andrew Bailey says
UK inflation touches BoE’s target
Alignment with goal expected to be short lived but opens door to rate cuts later in year
Book notes: The wealth of a nation, by Geoffrey Hodgson
This book provides a deep dive into the economic and institutional transformations that supported the rise of English capitalism
How to cut the interest cost of bank reserves – and how not to do it
William Allen says setting required reserves is not a straightforward decision for the Bank of England
BoE reserves framework drawn into political arena
Minor party’s proposal to axe interest on reserves highlights BoE’s costly operating framework
Bailey predicts ‘significant increase’ in BoE repo operations
Banks have started demanding reserves through short-term repo facility as balance sheet shrinks
What is forecasting for? Bernanke and the future of BoE projections
The Bernanke review pushes central banks to rethink the role of forecasts in policy-making, but it also shies away from solving a key paradox in the process
Bank of England may cut rates soon – deputy governor
Pressures have faded but economy is facing second-round effects, Broadbent said
Regulators must be wary of AI’s ‘invisible hand’ – BoE official
Two members of the financial policy committee back idea of AI “constitution”
Bank of England to increase staff in regional office
Seven-fold expansion of Leeds employees will widen talent pool and improve trust, BoE says