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Bank of England Press Release

PRESS RELEASE - Following the announcement that Mr Mervyn King will replace Sir Edward George as Governor of the Bank of England when he retires at the end of June 2003, Sir Edward welcomed the appointment on Wednesday.

George says public spending will prop up growth

Speaking on Tuesday the Bank of England's governor, Sir Edward George said public spending will underpin UK economic growth once consumer demand starts to wane, but any "substantial and generalised" public sector pay rises will push up inflation. He gave…

London not losing out over euro says B of E

In its six monthly 'Practical Issues Arising from the Euro' the Bank of England said on Friday that the City of London had retained its share of foreign exchange trading and in various other dealing areas since the introduction of the euro as a tradeable…

Reserve Management in an Era of Low Returns

RESEARCH - Although central banks have traditionally conducted their reserves management in a conservative and risk-averse way, the very low interest rates we see now have caused central banks, like other fixed income investors, to search for higher…

Mervyn King at the LSE

The irrepressible Mervyn King, deputy governor of the Bank of England, was in ebullient mood Tuesday night at the London School of Economics as he lauded the achievements of the Bank's ten years of inflation targetting. Nick Carver of Central Banking was…

Bank of England Monetary Policy Committee Minutes

MINUTES - Minutes of the Bank of England's Monetary Policy Committee Meeting released on 20 November for the meeting of 6 and 7 November 2002. The nine MPC members voted on a proposal to maintain the repo rate at 4.0%. Seven voted in favour of this with…

Bank of England Press Release

PRESS RELEASE - In a speech at the London School of Economics 19 November, Mervyn King, Deputy Governor, Bank of England, explains in detail why price stability is desirable and sets out the benefits it has brought to the UK - The Inflation Target 10…

King on The Inflation Target 10 Years on

SPEECH - In the speech 'The Inflation Target 10 Years on' Mervyn King of the Bank of England said the Monetary Policy Committee could not target asset prices directly but spent a lot of time questioning how such changes should affect policy. He believes…

Bank of England voted 7-2 to hold rates

The Bank of England seem to be moving away from an easing bias, minutes published Wednesday show. The previous record showed three committee members wanted a quarter point rate cut but this time Kate Barker shifted back with the majority in favour of…

George moves to allay fears on public finances

Edward George agrees with Mervyn King that the UK housing market is set for a dramatic slowdown in price rises. He joins the stability and growth pact debate effectively criticising it by raising concerns about spending cuts and tax increases when the…

CentralBankNet Monday Special Feature

SPECIAL FEATURE - Mervyn King caused a stir last week saying "I have no wish to go into the pulpit" and lecture people about house prices. But with UK property values at dangerously high levels and the catastrophic consequences for the UK economy if, in…

Britain held back by isolation from euro

LETTER - Letter published in the Financial Times, 18 November by Simon Buckby, Campaign Director, Britain in Europe. He says Britain's label of the 'reluctant European' has cost it dear and membership of the euro will be the first step in repairing the…

Edward George on price/earnings ratios

SPEECH - Sir Edward George of the Bank of England told the Association of Corporate Treasurers last week that on some measures price/earnings ratos were back to the long-term averages. Is he saying the equity bubble is over, at least in the UK?

Spotting the next asset price bubble

ARTICLE - A thoughtful article in last Friday's FT by John Calverly of American Express Bank suggests that an asset valuation committee should be set up to warn of potential asset price bubbles. Though Calverly was directing his remarks to the UK, it is…

Sterling coins may contain more nickel than euros

UK - Britain in Europe (BiE), a lobby group who campaign for UK entry to the euro, have come up with the perfect riposte to euro sceptics who complain that the euro coins contain high levels of nickel which can cause skin irritation. A Europhile lobby…

Deflation may be the real danger for central banks

ARTICLE - Deflation or inflation - could the central bank guns be facing in the wrong direction? This article suggests that rather than worry about inflation, the major central banks could instead be preparing for a battle against the opposite, deflation.

Diverse bunch

ARTICLE - Another inflation report, another smooth performance from Mervyn King, the Bank of England's monetary policy supremo. Despite the best efforts of his interrogators, he refused to let the words "boom" or "bubble" pass his lips when talking about…

Bank of England Inflation Report, November 2002

REPORT - The Bank of England published its quarterly Inflation Report for November 2002 on Wednesday. In the report the bank recognises the fragility of the world economy and continued stock market volatility. The report reveals that inflation is…

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