Funding pressures influencing rate votes: BoE’s King

bank-of-england

Banks' elevated funding costs are playing an important role in the Monetary Policy Committee's (MPC) deliberations, Mervyn King, the governor of the Bank of England, on Wednesday said.

A chart in the May Inflation Report, also released on Wednesday, highlights that the spread between bank rate and marginal funding costs is now far wider than before the crisis. Before the crisis, the spread was negligible, but the chart shows that the spread is now around 1.5 percentage points.

When asked whether

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: