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Gieve: we need new instruments

Sir John Gieve, the deputy governor of the Bank of England, has admitted that the Bank underestimated the scale of the credit crisis and said the turmoil has demonstrated the need to equip central banks with new policy tools.

Old Lady mulled another mammoth move

The Bank of England's Monetary Policy Committee (MPC), which slashed rates by a percentage point to take them to an all-time low earlier this month, considered backing an even larger move, the minutes of the meeting reveal.

UK inflation falls as King writes letter

British inflation fell in November but remains far above the Bank of England's target, obliging Mervyn King, the governor of the central bank, to write another letter explaining why inflation remains so high and what the Bank is doing to bring it down.

BoE survey confirms household squeeze

The results of a survey of household finances, published on Monday by the Bank of England, finds that 71% of British homeowners and tenants have experienced declines in their disposable income in September compared with the same month last year.

Lessons of Northern Rock

A paper from the Bank of Finland analyses the failure to stop the run on Northern Rock and considers what should be done to help prevent the recurrence of such episodes in the future.

Co-movements highlight policy stance

Low-frequency co-movements between inflation and money growth, and short-term interest rates and money growth shed light on a central bank's monetary policy stance, states a paper from the Bank of England.

BoE's Gieve states case for global action

Ever-more frequent global policy co-ordination will be essential in avoiding future financial crises, Sir John Gieve, the deputy governor responsible for financial stability at the Bank of England, has said.

Bank cuts to historic low

The Bank of England cut interest rates to their lowest level since 1951 on Thursday and stressed that further steps would be needed to prevent a deep recession.

Zero rates the only way out: ex-MPC members

Central bankers and global regulators must throw out the rule book on moral hazard, and act rapidly and decisively to fix the global financial meltdown, former members of the Bank of England's Monetary Policy Committee have said.

British PM denies UK close to joining euro

Gordon Brown, the British prime minister, has denied the UK plans to join the eurozone after the European Commission president said Britain was "closer than ever before" to adopting the single currency.

We'll make the banks lend: King

Mervyn King, the governor of the Bank of England, on Tuesday indicated that the British authorities would take drastic action if banks continued to curtail lending.

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