Bank of England (BOE)
The Bank of England is the public law institution of Britain that serves as the central bank. It organizes the work of the Monetary Policy Committee, which is responsible for managing the country's monetary policy.
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Main article: UK economy
Modern monetary theory
Main article: Modern Monetary Theory (SDT)
The financial policy of the country corresponds to the Modern Monetary Theory (SDT).
Issue of £
Digital pound sterling
Main article: Digital pound sterling
Cash issue to keep the economy afloat
2019: $101bn worth of pounds in circulation
The gold supply as of August 2019 is $8.7 trillion, the US dollar supply is $1.7 trillion.
2012: Issue of an additional £50bn
In early February 2012, it was decided to print another 50 billion pounds. Thus, in the course of asset buybacks, the Bank of England printed £325 billion. The reason for the last stage of quantitative easing was the slowdown in the economy in 2011. It was assumed that with the help of an injection of funds it will be possible to support high prices for assets, including stocks and real estate, and thus keep the economy from sliding into recession.
In May 2012, it became known that the Monetary Policy Committee of the Bank of England voted against further buying up government bonds by including a printing press (the so-called "quantitative easing"). In the long term, further expansion of the asset buyback program is possible.
The regulator suspended the printing press amid reports of high inflation. The target level of this indicator for the Central Bank is 2 percent by the end of 2012. In March 2012, consumer price growth peaked in the last five months - 3.5 percent the[1].
2011: Expansion of "easing" programme to £275bn
In October 2011, the Bank of England expanded its quantitative easing programme to 275 billion pounds.
2009: Issue of £200bn to buy up assets
In 2009, at the height of the financial crisis, the British Central Bank launched a quantitative easing program. Then the regulator bought assets worth 200 billion pounds.
Key rate
2023: Rate rises to 5.25% - highest since 2008
On August 3, 2022, the Bank of England raised the rate by a quarter point to 5.25%, the highest value in the last 15 years.
Earlier, the Bank of England, following the May meeting, decided to increase the base interest rate by 25 bp. - up to 4.5% per annum. Thus, the rate was raised at the end of the twelfth meeting in a row and updated the maximum since 2008.
Earlier, the Bank of England on March 23, 2023 raised the rate by 0.25 pp to 4.25%, the highest level since 2008, and left the door open to further increases if inflation persists.
Earlier on February 2, 2023, the Bank of England raised the discount rate by 50 bp, to 4% from 3.5% per annum, declaring the need for additional increases.
Bailey said inflationary risks were tilted "significantly" upwards.
2022: Rate increase to 3.5% - record since 2008
On December 16, 2022, the Bank of England raised the rate by 0.5% to 3.5%, the highest level since 2008.
Earlier on November 3, 2022, the Bank of England raised the rate by 75 basis points, the highest increase since 1989. The rate was 3 percent.
Earlier on September 22, 2022, the Bank of England raised the discount rate by 50 bp to 2.25% from 1.75%.
Earlier on August 5, 2022, the Bank of England raised the discount rate at the maximum pace since 1995 - to 1.75% from 1.25%.
Earlier on June 16, 2022, the Bank of England raised interest rates at the fifth meeting in a row by 25 bp to 1.25%.
On May 5, 2022, the Bank of England raised its key rate to 1% from 0.75% and warned that the economy would shrink under double-digit inflation pressure.
On February 3, 2022, the Bank of England raised its benchmark interest rate to 0.5% from 0.25%. Raising the rate to 0.5% from 0.25% was supported by five out of nine members of the bank's board. The surprise was that four voted for a larger rate increase - to 0.75%. They all said further moderate tightening would be needed in the coming months.
BOE representatives raised their forecasts for the peak of inflation to 7.25% in April, more than three times the BOE target of 2%. Earlier, inflation was expected to peak at about 6%.
2021: Rate increase to 0.25%
The Bank of England on December 16, 2021 unexpectedly raised the discount rate to 0.25% and retained the buyback of assets in the amount of 895 billion pounds.
2020: 0.1% rate
2012: 0.5% rate
In May 2012, the Central Bank of Britain did not raise the refinancing rate, which is at a record low of 0.5 percent.
History
2023: Blackrock to interview candidates for Bank of England governor
In November 2023, it became known that the investment giant Blackrock will test candidates for the post of head of the Bank of England.
The Treasury needs to replace Ben Broadbent, who is due to step down in June.
Thus, the head of the company in Europe, the Middle East and Africa, Stephen Cohen, will choose the second most influential official in the financial institution.
Cohen will help create a short list, and then interview the selected candidates before making final recommendations to Treasury Secretary Jeremy Hunt.
Blackrock manages billions of pounds of macrophonds in Britain, which are quite sensitive to the interest rate policy of the central bank.
No conflict of interest is taken into account, although it is clear that the bank is responsible for controlling the financial system and attracting a person who represents one of the most influential players in the financial markets in the recruitment process looks suspicious, to put it mildly.
However, both the Treasury and BlackRock and the Bank of England declined to comment on the matter.
See also
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