UK BOE Gov Bailey Speaks
As head of the central bank, which controls short term interest rates, he has the most influence over monetary policy. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future policy;
BOE Governor Mar 2020 - Mar 2028. Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues;
- History
Expected Impact / Date | Description |
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Aug 23, 2024 | Due to speak at the Jackson Hole Economic Policy Symposium, in Wyoming; |
Aug 1, 2024 | Due to hold a press conference about the interest rate decision at the Bank of England, in London; |
Jun 27, 2024 | Due to hold a press conference about the Financial Stability Report, in London; |
May 21, 2024 | Due to speak at the London School of Economics; |
May 9, 2024 | Due to hold a press conference about the interest rate decision at the Bank of England, in London; |
Apr 17, 2024 | Due to speak at the Institute of International Finance Global Outlook Forum, in Washington DC; |
Apr 16, 2024 | Due to speak at the International Monetary Fund Spring Meetings, in Washington DC; |
Mar 12, 2024 | Due to participate in a panel discussion titled "Hard times: Shocks and Policies since the Global Financial Crisis" at the Bank of Italy Symposium, in Rome; |
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- UK BOE Gov Bailey Speaks News
Officials from three of the world’s major central banks on Friday signaled they are firmly on course to lower — or continue lowering — interest rates in the coming months, marking the beginning of the end for an era of high borrowing costs as the global economy slips out of the grip of post-Covid inflation. “The time has come for policy to adjust,” Fed Chair Jerome Powell told an annual gathering of global policymakers and economists in Jackson Hole, Wyoming, all but committing the US central bank to lowering rates when officials ...
I want to use my time to look behind the latest state of monetary policy, at issues that have arisen from the experience of recent years, but with some reflections on where we are now. The pandemic caused a sudden, coincident and precipitous fall in global demand and supply – one of these did not obviously lead the other. Moreover, in March 2020 we faced monetary policy and financial stability issues arising from the same source, namely the pandemic. Taken separately, the responses should be different, with a more exceptional temporary, targeted and typically maximum force intervention better suited to dealing with a financial stability problem. In contrast, a monetary policy response of the sort used in 2020 is typically undertaken over time. But when monetary policy and financial stability issues coincide, the judgement becomes more complicated. By engaging both of the core central bank objectives, the pandemic posed an unusual but not unprecedented challenge. As economies started to adjust to the consequences of the pandemic there was a substantial increase in global demand for goods rather than services, at a time when the supply of goods remained disrupted and restricted. This was an asymmetric demand shock. Global goods prices rose as a result, akin to a cost-push shock for open economies like the UK. This was the context of the so-called transitory assessment of monetary policy, namely that such shocks should be short-lived in impact because supply chains should recover and inflation expectations should remain anchored in anticipation of that recovery. That’s the theory. The evidence suggests that, taken on its own, the global supply chain shock had run its course by the end of 2022. But a key question at that time was whether and to what extent there would also be catch-up effects in wages and services prices, and over what time period? In the UK, the labour market did begin to tighten but it was hard to discern at the time by how much. In mid- to late-2021 the UK Governme post: BOE GOV. BAILEY: I AM CAUTIOUSLY OPTIMISTIC THAT INFLATION EXPECTATIONS ARE BETTER ANCHORED. post: BOE GOV. BAILEY: IT IS TOO EARLY TO DECLARE VICTORY ON INFLATION. post: BOE GOV. BAILEY: WE NEED TO CHART A STEADY COURSE ON MONETARY POLICY. post: BOE GOV. BAILEY: INFLATION IS NOT BACK AT THE TARGET ON A SUSTAINED BASIS.
The Bank of England kicked off its easing cycle today with a 25bps policy rate cut to 5.00%. The move was in line with the bias of markets and economists going into the decision, but with ‘only’ 15bps priced in and practically all analysts calling it ‘too close to call’ it really looked like anyone’s guess for what the Bank would decide today. We were marginally in favour of a rate hold today followed by a cut in September. Instead, we will probably see the inverse, with a cut today and a hold at the next meeting, as guided by the ...
post: BOE GOV. BAILEY: WE STILL FACE A QUESTION ON WHETHER A PERSISTENT COMPONENT OF INFLATION IS ON COURSE TO DECLINE TO A LEVEL CONSISTENT WITH 2% INFLATION. post: BOE GOV. BAILEY: THE FORECAST IS CONSISTENT WITH A BENIGN VIEW OF PERSISTENCE. post: BOE GOV. BAILEY: WE GIVE SOME WEIGHT TO AN ALTERNATIVE, LESS BENIGN INFLATION PERSISTENCE SCENARIO. post: BOE'S BAILEY - ASKED IF BOE RATE POLICY IS "ONE AND DONE", SAYS WILL GIVE NO VIEW ON PATH OF RATES ** BOE GOES MEETING TO MEETING, MAKING JUDGEMENT BASED ON EVIDENCE ** MPC CONTINUES TO REMAIN HIGHLY ALERT TO RISKS OF INFLATION PERSISTENCE
Our Monetary Policy Committee (MPC) decides what monetary policy action to take. The MPC sets and announces policy eight times a year (roughly once every six weeks). In this video, the MPC discusses the decisions taken in August 2024 and answers questions from the press.
It is a great pleasure to be here at this event, hosted by the LSE’s Financial Markets Group in honour of Charles Goodhart. This evening, I am going to talk about central bank balance sheets and in particular the Bank of England’s balance sheet. An esoteric topic perhaps, but an important one, now more than ever. And it is a topic on which Charles has written extensively. Charles worked at the Bank for nearly two decades, of course, before his distinguished career as a professor here at the London School of Economics. His article “The importance of money”, published in the Bank’s Quarterly Bulletin in 1970 and available on the Bank of England’s website, was a milestone in the study of the predictability of money demand.footnote[1] At the time this was an important issue in debates over monetary control mechanisms and the relative merits of monetary ‘rules’ and policy ‘discretion’, a debate he masterfully summarised in his 1975 book on “Money, Information and Uncertainty”. In this and later work, Charles brought his deep understanding of the nature of financial markets, of banking and of monetary assets to bear, the historical perspective always present. In his 1988 book “On the Evolution of Central Banks” he discussed “how the role and functions of Central Banks have evolved naturally over time, and play a necessary part within the banking system”. Fast forward two more decades – acr post: BoE’s Bailey: We Think the Central Bank Balance Sheet Will Remain Larger Than Before the Financial Crisis Though Not as Large as Today post: BANK OF ENGLAND'S BAILEY: A RANGE OF 345-490 BLN STG IS NOT A BAD STARTING POINT FOR CENTRAL BANK BALANCE SHEET || BANK OF ENGLAND'S BAILEY: REPO PORTFOLIO CAN OFFER A RELIABLE AND FLEXIBLE SOURCE OF RESERVES AS LARGELY ADDITIONAL HIGH-QUALITY LIQUID ASSETS TO THE SYSTEM
post: UK BOE DEP. GOV. BROADBENT: MARKET RATE CURVE MAY BE A LITTLE HIGH, BUT IT DOESN'T MEAN IT IS UNREASONABLE.
post: BOE'S BAILEY - LIKELY WE WILL NEED TO CUT BANK RATE OVER THE COMING QUARTERS BOE'S BAILEY - POSSIBLE WE WILL NEED TO CUT RATES MORE THAN CURRENTLY PRICED INTO MARKET RATES post: BOE GOV. BAILEY: WE HAVE NO PRECONCEPTIONS ABOUT HOW FAR AND FAST WE WILL CUT RATES. post: BOE GOV. BAILEY: MARKET MOVES IN INTEREST RATE EXPECTATIONS HAVE BEEN DOMINATED BY US MOVES. post: BOE GOV. BAILEY: THERE HAS BEEN SOME DECOUPLING RECENTLY BETWEEN UK AND US MARKET RATE EXPECTATIONS. post: BOE GOV. BAILEY: ONE SMALL CUT IN THE BANK RATE WOULD STILL LEAVE US WITH RESTRICTIVE MONETARY POLICY.
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