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08.09.26 - 20:18
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Bank of England′s tricky balancing act in dealing with global bond shock | Letter (The Guardian)
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Complicated trade-offs raise the issue of whether the government needs to change its relationship to the Bank of England, says Prof Costas MilasYour editorial (The Guardian view on the global bond shock: Andy Burnham should take note, 1 September) implicitly suggests that the global bond shock will bring firmly into focus our government's fiscal responsibility.Fiscal responsibility is a precondition for avoiding a further rise in the UK's cost of borrowing. Nevertheless, fiscal policy has to be considered together with monetary policy. In fact, the current rise in UK yields poses a huge challenge for the Bank of England's policymakers, who will make their next decision on UK interest rates on 17 September. This is when the Bank's monetary policy committee (MPC) will announce the amount of government bond sales (or quantitative tightening, QT) to be pursued over the next 12 months. Continue reading......
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08.09.26 - 20:18
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UK government pays highest interest rate on 30-year bond since 1998 (The Guardian)
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High yields threaten to wipe out at least half of the £24bn headroom John Healey was expecting to have for his budgetThe UK government was forced to pay the highest interest rate for a 30-year bond since 1998 on Tuesday, underlining the fiscal challenges facing the chancellor, John Healey.Echoing the global bond market sell-off that has driven up yields, or interest rates, on government borrowing across the main markets, the Treasury paid 5.82% to borrow £4bn. Continue reading......
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03.09.26 - 07:30
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Dutch central bank moves 86 tonnes of gold to UK from US and Canada, citing ′geopolitical unrest′ (The Guardian)
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Bank says gold reserves held in London could be traded more easily and the move will allow it to respond more rapidly in a 'crisis situation'The Dutch central bank says it has moved 86 tonnes of its gold reserves out of the US and Canada to London, citing “increasing geopolitical unrest”.De Nederlandsche Bank (DNB) said gold reserves held in London could be traded more easily than those held in New York and Ottawa. Continue reading......
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