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Monetary policy

Today

Bank of England fails to ease Britain’s market ructions

The UK’s central bank said it wouldn’t rush through an emergency interest-rate increase, prompting another bond and sterling sell-off.

  • 15 mins ago
  • Hans van Leeuwen

Yesterday

Avoiding the recession we don’t have to have

There are no wage or currency pressures that would justify the RBA following the Fed into aggressive rate rises.

  • Craig Emerson

Invoking Thatcher is problematic for the UK’s new treasurer

Economists and financial market experts dispute there are deep policy parallels between Kwasi Kwarteng’s approach and that of former UK PM Margaret Thatcher.

  • Chris Giles and Delphine Strauss

Markets have many traits that led to the ’87 crash

Investors are in a world of pain as central banks curtail their experiment with ultra-low interest rates, while analysts point to the parallels with the 1987 market collapse.

  • Karen Maley

This Month

Fed finally vanquishes stocks from asset allocation throne

The mantra that investors had no alternatives to stocks has given way to a panoply of actual choices.

  • Denitsa Tsekova
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Why investors hate the UK PM’s biggest tax cuts in decades

The Bank of England is tapping the brake, Liz Truss is hitting the accelerator. Nobody knows which way the economy will go, and the markets want to get off.

  • Hans van Leeuwen

Inflation fight: Are central banks going too far, too fast?

With sharp rises in interest rates and currency interventions, central bankers insist they will vanquish inflation, whatever the cost.

  • Chris Giles and Valentina Romei

Investors flee as UK bets the lot on tax cuts, massive borrowing

The pound plummeted and bond yields went into freefall as the new British government unleashed huge tax cuts not seen since the 1970s.

  • David Milliken and Andy Bruce

Bank of England lifts key rate by 0.5pc in split decision

The move to 2.25 per cent was backed by five of the nine-member Monetary Policy Committee, including governor Andrew Bailey.

  • Updated
  • Philip Aldrick and David Goodman

A global backlash is brewing against the Fed

A reverse currency war is in full flow, with monetary authorities across the world now ditching their standard quarter-point increases.

  • Claire Jones

Global economy β€˜on a knife edge’, says RBA deputy governor

Reserve Bank deputy governor Michele Bullock sees worrying signs in Europe, the US and China.

  • Jonathan Shapiro

RBA’s bond buying experiment could cost $58b

The RBA will not pay a dividend to the government β€œfor a number of years” as it nurses balance sheet losses relating to its bond purchase program that could top $58 billion.

  • Updated
  • Jonathan Shapiro and John Kehoe

End of an era prompts the question: Did negative interest rates work?

Critics of negative interest rates insist the policy damaged European lenders, while some central bankers say it boosted loan growth.

  • Martin Arnold and Kana Inagaki

Fed under pressure to back up hawkishness with rate projections

The US central bank is expected to publish its first β€œdot plot” since June after months of persistently high inflation.

  • Colby Smith

Central bank big shots want pay restraint from the little guys

Businesses with pricing power will be able to pass wage increases on to customers. Central bankers wanting to earn their keep need to crack that conundrum, rather than chastise workers asking for more.

  • The Lex Column
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A bit rich for governments to blame their central banks

Governments may be forced to acknowledge their own complicity in the inflation that they are so keen to be rid of.

  • Adrian Blundell-Wignall

Central banks set to raise rates higher and faster

Markets are increasingly betting on policymakers in the US, UK and eurozone hitting peak rates at a faster pace.

  • Valentina Romei

How to avoid the carnage from the mortgage cliff coming in 2023

A lot more will be written about the fixed-rate mortgage cliff. In the absence of solutions from fiscal policy, the RBA can partly help manage the mess it created.

  • Tim Hext

Rate rises are crushing house prices and β€˜zombie’ firms

There has only been one economic driver of this correction: the Reserve Bank’s near-record increase in the cost of borrowing.

  • Updated
  • Christopher Joye

Sticky inflation may force Fed to lift rates above 5pc

The zeal with which central bankers will attack inflation creates a significant risk they engineer a hard landing, says UBS Asset Management’s head of investments.

  • Alex Gluyas