Tue, 21-Oct-2025

Watch Live

logo-black

Download App

اردو

BAnk of England

Bank of England stress test reveals all eight major UK banks have enough capital

by
Bank of England stress test reveals all eight major UK banks have enough capital

The annual stress test by BoE found that all eight major banks have enough capital. The test included a scenario with higher interest rates and a deep recession. No banks were required to submit revised capital plans. The Bank of England (BoE) reported on Wednesday that none of the eight major institutions subjected to its … Read more

Bank of England intends to liquidate Silicon Valley Bank’s UK subsidiary

by
England
  • Bank failures are uncommon in the United Kingdom.
  • Certain depositors in the United Kingdom are eligible for up to 85,000 pounds.
  • The parent SVB was taken over by US banking regulators earlier on Friday.

The Bank of England announced on Friday that it was seeking a court order to put Silicon Valley Bank UK Limited into insolvency, following the takeover of its parent firm, SVB Financial Group (SIVB.O), by US regulators earlier in the day.

“SVB UK has a limited presence in the UK and no critical functions supporting the financial system. In the interim, the firm will stop making payments or accepting deposits,” the BoE said.

Certain depositors in the United Kingdom are eligible for up to 85,000 pounds ($102,000) in compensation for lost deposits through insolvency proceedings for banks or 170,000 pounds for joint accounts.

Failures are uncommon

Other assets and liabilities would be managed by the bank’s liquidators, and any monies recovered would be distributed to creditors, according to the Bank of England.

Bank failures are uncommon in the United Kingdom, with only two institutions having gone through the BoE’s resolution procedures since 2009.

SVB’s British subsidiary had requested 1.8 billion pounds of liquidity from the Bank of England through its discount window facility, which provides emergency lending to banks with acceptable collateral.

Earlier on Friday, Silicon Valley Bank UK said that it was a separate organization with an independent board of directors, apart from the parent company and its subsidiaries.

The parent SVB was taken over by US banking regulators earlier on Friday in an effort to protect depositors after the greatest bank failure since the financial crisis caused the global banking sector to lose billions in market value.

The SVB stock crash, which began on Thursday, has spread to other US and European banks. US banks have lost more than $100 billion in stock market value in the last two days, while European banks have lost another $50 billion.

[embedpost slug=”/england-wales-banned-use-and-sale-of-laughing-gas/”]

Read more

Unveiling of King Charles III banknotes

by
King Charles

The Bank of England revealed its first bank notes picturing King Charles III. They will replace his mother Queen Elizabeth II’s notes by 2024. Charles became king, after Queen’s death. The Bank of England revealed its first bank notes picturing King Charles III on Tuesday. They will replace his mother Queen Elizabeth II’s notes by … Read more

Stock markets rise after Bank of England’s commitment to buy £65 billion bond

by
Stock markets

Bank of England announced that it would purchase £65 billion worth of UK government bonds Stock markets in Asia and the US have soared. The declaration was made after the mini-budget on Friday caused chaos in the financial markets and caused the pound to fall. After the Bank of England announced that it would purchase … Read more

Bank of England probes the persistence of UK’s inflation surge

by
United Kingdom
  • Inflation expectations and company prices have slowed, but core pay has increased. Rate-setters may believe that they should raise interest rates by 50 basis points. The Bank of England may take solace from a recent drop in how much consumers expect prices to rise.
  • Salary growth has accelerated, but much of the increase is due to one-time bonuses. Pay, including bonuses, increased by 6.2 percent in the three months to May.
  • However, employment expectations for the next 12 months have dropped to their lowest level in over a year.

LONDON, August 1 – The Bank of England says it will act forcefully if necessary to prevent the inflationary surge from becoming a long-term problem, which means it could deliver a rare half-percentage point interest rate rise as soon as this week.

Here are some of the factors Governor Andrew Bailey and his colleagues will consider as they assess the persistence of inflationary pressures ahead of their next scheduled monetary policy announcement on Thursday at 1100 GMT.

Inflation expectations and company prices have recently slowed, but core pay has increased.

Rate-setters at the Bank of England may believe that they should raise interest rates by 50 basis points after other central banks raised borrowing costs sharply in recent weeks, despite the risk of an economic slowdown or recession.

EXPECTATIONS FOR INFLATION
In June, Britain’s main inflation measure reached a 40-year high of 9.4 percent, prompting some economists to raise their forecast for the peak of inflation to 12 percent. However, central banks are frequently concerned about future inflation expectations.

The Bank of England may take solace from a recent drop in how much consumers expect prices to rise in the coming years.

A survey released on Monday by Citi and pollsters YouGov found that public expectations for inflation in the next five to ten years – the most important measure for the Bank of England – fell in July for the third time in four months, though it remained high by historical standards at 3.8 percent. more info

Another Bank of America survey, released on July 12, found that five-year inflation expectations had dropped to their lowest level in nearly a year. more info

A measure of financial market expectations for inflation in the next five to ten years fell to its lowest level since April 2020 last week, but has since risen.

If high inflation expectations become entrenched, they may lead to higher pay demands, which may fuel additional inflation in the future.

Salary growth has accelerated, but much of the increase is due to one-time bonuses to attract or retain employees as employers struggle to find candidates to fill open positions.

Pay, including bonuses, increased by 6.2 percent in the three months to May, up from around 3 percent just before the COVID-19 pandemic, but lower than the previous two monthly readings and lagging inflation.

Regular pay growth increased to 4.3 percent, exceeding its immediate pre-pandemic levels of 3-4 percent.

According to the Bank of England’s own survey of employers, expectations for pay growth in the next 12 months increased to 5.1 percent in June from 4.8 percent in May. However, the survey also revealed that employment expectations for the next 12 months have dropped to their lowest level in over a year.

In addition to pay, high inflation could become embedded in the economy if companies continue to raise their prices in response to rising costs.

In April, increases in firm prices charged, as measured by the S&P Global/CIPS Purchasing Managers Index, were the highest since records began in 1999. However, while still rapid by historical standards, the pace slowed slightly in May and June and cooled significantly in July.

Separate data from the Office for National Statistics show a drop in the proportion of businesses expecting to raise their prices in early July.

[embedpost slug=”/prince-harry-and-meghan-markle-are-threats-to-firm/”]

Read more

First round of voting for new PM among UK Conservative

by

MPs to vote on who will succeed Boris Johnson on September 5. Johnson resigned last week after a cabinet revolt, led by then-finance minister Rishi Sunak. Sunak topped Tory MPs’ nominations on Tuesday, ahead of Liz Truss, Paul Shapps and Penny Mordaunt. LONDON: Britain’s ruling Conservative Party was set to narrow down the eight contenders … Read more

We’re not blocking post-Brexit freedoms, says Bank

by
Post-Brexit

UK regulators are blocking billions of pounds in post-Brexit investment. Some worry that it could undermine the Bank of England’s independence. PRA chief says potential to reshape insurance regulation is once-in-a-generation occurrence. A significant financial watchdog has responded to accusations that it is preventing billions of pounds in UK investment by not utilising post-Brexit freedoms. … Read more

Bank of England defends insurance rule reform stance

by
Bank of England
  • The Bank of England has mounted a staunch defense of its approach to reforming UK insurance rules.
  • The Solvency II framework, inherited from the EU, dictates how much cash companies must maintain and where they may invest.
  •  PRA stated that insurers should not be given a “free lunch” in the form of a capital release.

The Bank of England has mounted a staunch defense of its approach to reforming UK insurance rules, amid growing political and industry pressure.

The Prudential Regulation Authority of the Bank of England, which oversees insurers, is collaborating with the Treasury on long-awaited modifications to the Solvency II framework.

The rule, inherited from the EU, dictates how much cash companies must maintain and where they may invest.

The government has conducted a consultation on revising the rules, touting it as one of the most significant “Brexit rewards.”

[embedpost slug=”home-loan-has-dropped-to-its-lowest-level-in-22-years-as-interest-rates-rise/”]

Read more

Bank of England vows to bring down inflation

by
Bank of England

The UK’s inflation rate reached 9.1 percent in May, the highest level in 40 years. The Bank of England issued a warning in June that inflation may reach 11%. Higher interest rates encourage consumers to save more money. The Bank of England has made more interest rate increases seem likely as it works to get … Read more

UK economic outlook has deteriorated, Bank of England warns

by
UK

Bank of England issued a warning that the economic outlook for the UK “materially deteriorated”. “Costs of energy and gasoline are rising quickly globally, which causes prices to increase overall. The Bank asserted that UK banks are prepared to withstand even a severe economic slump. The Bank of England has issued a warning that the … Read more

UK inflation jumps 9.1% as food prices rise

by
UK inflation

UK inflation reaches 9.1% in May, the highest level since 1982. Bread, cereals, and meat experienced the greatest price increases. Experts predict inflation to reach double digits by September. The Bank of England anticipates that inflation would approach 11% in October. In May, the UK’s inflation rate reached a new peak of 9.1%, its highest … Read more

FPC of Bank of England will remove mortgage affordability test

by
UK inflation

Bank of England’s Financial Policy Committee will retract its proposal on the mortgage affordability test. The measure provides a “small” additional insurance, according to the BoE. A second recommendation. The loan-to-income “flow limit,” would not be rescinded. The Bank of England Financial Policy Committee will retract its proposal on the mortgage affordability test because the … Read more

European stocks surge despite major weekly loss in global stocks

by

London’s FTSE 100 and Germany’s Xetra Dax climbed by 0.9% and 0.4%, respectively. Last week, global share prices experienced worst weekly fall since March 2020’s pandemic-induced turmoil. European stocks markets rose slightly on Monday, following the worst weekly fall for global stocks since March 2020’s pandemic-induced turmoil. As traders expected economic data and a congressional … Read more

The Bank of England hiked interest rates in the UK to 1.25 percent

by
United Kingdom

Interest rates rise from 1.25% to 1.5%, the fifth consecutive rise, pushing them to highest level in 13 years. Comes as finances are being squeezed by rising cost of living; driven by record fuel and energy prices. The Bank warned inflation could surpass 11% later this year. The Bank of England has raised interest rates … Read more

Food inflation is expected to accelerate this summer, with prices remaining high

by

According to one forecast, food prices will remain persistently high this summer as a poisonous mix of headwinds, including the war in Ukraine, combine to exacerbate the overall cost of living crisis. According to the most recent official numbers from the Office for National Statistics, the rate of grocery inflation is just under 7%. Food … Read more

Bank of England boosts interest rates amid 10% inflation

by
England

The Bank of England cautioned that the cost-of-living issue might send the economy into recession this year, as it raised interest rates to combat skyrocketing inflation, which is forecast to exceed 10% in the coming months. Threadneedle Street’s monetary policy committee (MPC) voted unanimously to raise the base rate from 0.75 percent to 1 percent, … Read more

UK annual inflation hits fresh 30-year high

by
inflation

LONDON: UK annual inflation has hit the highest level since 1992, data showed Wednesday, adding pressure to the cost of living and on the Bank of England to keep raising rates. The Consumer Prices Index (CPI) edged up to 5.5 per cent in January from 5.4 per cent in December, also a level not seen in … Read more

UK retail sales sink in December on Omicron fears

by
uk retail sales

LONDON: British retail sales slid in December, as consumers shunned the high street due to concerns over the Omicron coronavirus variant, official data showed on Friday. Total sales volumes dropped 3.7 per cent last month compared to November, the Office for National Statistics (ONS) said in a statement. Sales had risen by one per cent in … Read more

Venezuelan gold case sends back to lower court

by
Venezuelan gold

The UK Supreme Court on ruled that a dispute over control of 31 tonnes of Venezuelan gold deposited with the Bank of England should be heard again by a lower court. The judges said the Commercial Court should look at whether rulings by Venezuela’s Supreme Court should apply in deciding the long-running case, which pits … Read more

Bank of England hikes interest rate to fight hot inflation

by
UK inflation spikes to decade-high at 5.1%: official

LONDON: The Bank of England on Thursday unexpectedly lifted interest rates to 0.25 per cent from a record low 0.10 per cent, and flagged more hikes to combat decade-high inflation, despite Omicron fears. The BoE’s monetary policy committee voted 8-1 in favour of the first interest rate hike in more than three years, but unanimously … Read more

BoE torn between red hot inflation and rampant Omicron

by
Bank of England

LONDON: The Bank of England (BoE) will likely hold interest rates at their record lows on Thursday, as policymakers balance decade-high inflation against the economic fallout of the Covid-19 Omicron variant. The BoE’s monetary policy committee will announce its latest decision at 1200 GMT, in a whirlwind 24 hours that includes interest rate calls from both … Read more

Bank of England hawk mulling pause on interest rate hike vote due to Omicron

by
Bank of England

LONDON: The Bank of England policymaker Michael Saunders, who voted for an interest rate hike last month, said on Friday he wanted more information about the impact of the new Omicron coronavirus variant before deciding how to vote this month, Reuters reported. Saunders said Omicron might slow Britain’s economy but it could also add to inflation pressures … Read more

UK factory orders growth hits record, inflation climbs too

by
UK factory

LONDON: British industrial orders surged this month with a growth measure hitting its highest since at least 1977 and price expectations among manufacturers also climbed to a 44-year high, Reuters quoted a survey published on Wednesday. The survey is likely to add to unease at the Bank of England about growing inflation pressures ahead of the British … Read more

BoE holds interest rate despite soaring inflation

by

LONDON – The Bank of England on Thursday kept its key interest rate at a record-low 0.1 percent, but signalled a probable hike in the coming months to dampen soaring UK inflation. Following a regular meeting, the BoE added in a statement that it was maintaining its vast stimulus programme supporting the pandemic-hit UK economy … Read more

Cryptocurrencies could cause huge market crash, warns Bank of England

by
Cryptocurrencies could cause huge market crash, warns Bank of England

RIYADH: Sir Jon Cunliffe, the Bank of England deputy governor for financial stability, has called for cryptocurrencies to be regulated as a matter of urgency, Arab News reported. Sir Jon warned that a massive crypto market crash could be a realistic scenario. Reacting to his comments, Mikkel Morch, executive director at crypto/digital assets hedge fund ARK36, said: … Read more

Bank of England takes the stage after Fed signals tapering

by
Bank of England

LONDON: The Bank of England is set to keep its stimulus and record-low interest rate on Thursday but could follow the Federal Reserve in signalling when it will taper emergency support, analysts say. The BoE’s monetary policy committee is expected to keep its cost of borrowing at 0.1 per cent and maintain its cash stimulus pumping … Read more

WEF leader urges countries to pay attention to digital currency

by
WEF

DUBAI: Digital currency is going to play a big role in the global economy, a World Economic Forum (WEF) committee leader said, and nations need to pay attention to its unprecedented progress. “Somebody needs to be paying close attention to this space, and assessing on a weekly basis, what the national policy ought to be … Read more

Menu

Latest

Entertainment

Lifestyle