Created
: 2025.03.07
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
BoE's Mann: Interest-rate gradualism 'no longer valid'
World FX news
Breaking news
BoE's Mann: Interest-rate gradualism 'no longer valid'
New
2025.03.07 08:20
2025.03.07 08:20
2025.03.07 08:20
Bank of England Monetary Policy Committee member Catherine Mann said late Thursday that gradual interest-rate moves no longer send clear signals to volatile financial markets and larger shifts are now needed to "cut through" the noise for the good of the economy, per Bloomberg.
Key quotes
Monetary policy must navigate through choppy financial markets, shock-ridden economies, and sticky expectations.
Larger cuts, such as the one I voted for in the latest meeting, cuts through this turbulence, with the objective to more effectively communicate the stance of policy and influence the economy.
Incoming data on wage and price developments and one-year ahead expected trajectories are not yet target-consistent.
I have emphasized the need to hold a restrictive Bank Rate for longer to discipline this upward bias - and I still believe this.
The need to remain restrictive is particularly important.
The founding premise for a gradualist approach to monetary policy is no longer valid.
Market reaction
At the time of writing, the GBP/USD is trading 0.07% higher on the day to trade at 1.2887.
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve 'price stability', or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England's target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects - a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets - usually government or AAA-rated corporate bonds - from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
Last updated
: 2025.03.07
Related articles
AUD/JPY Price Analysis: Bears extend control, but downside momentum weakens
2025.03.08 06:56Australian Dollar falls after weak NFP data fuels risk aversion
2025.03.08 05:42Fed's Kugler: It is possible that we'll see more persistent inflation due to policies.
2025.03.08 04:00US Dollar faces worst weekly performance in over a year
2025.03.08 03:34US President Donald Trump: We might do Canada tariffs tomorrow
2025.03.08 02:52Mexican Peso struggles to hold gains, loses ground versus USD
2025.03.08 02:50
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
AUD/JPY Price Analysis: Bears extend control, but downside momentum weakens
The AUD/JPY pair experienced a second consecutive day of losses on Friday landing at around 93.30, as sellers maintained control and drove prices lower.
New
2025.03.08 06:56Australian Dollar falls after weak NFP data fuels risk aversion
The Australian Dollar extended losses on Friday against the USD after the release of the US Nonfarm Payrolls (NFP) report.
New
2025.03.08 05:42Gold price slips beneath $2,910 as US yields rebound
Gold prices fell on Friday as the Greenback trims some of its losses and US Treasury bond yields recover following the release of a US jobs market report.
New
2025.03.08 05:13Dow Jones Industrial Average roils on uneasy data after NFP misses forecasts
The Dow Jones Industrial Average (DJIA) struggled on Friday, falling to a fresh seven-week low below 42,200 before staging a mild recovery to the 42, 800 region.
New
2025.03.08 04:25Fed's Kugler: It is possible that we'll see more persistent inflation due to policies.
Federal Reserve (Fed) Board of Governors member Adriana Kugler hit newswires with cautionary comments on Friday that whiplash trade policies could do a lot of damage, including pinning inflation at a persistently higher level.
New
2025.03.08 04:00US Dollar faces worst weekly performance in over a year
The US Dollar Index (DXY) extends its brutal slide on Friday, heading for its worst weekly performance in over a year as traders accelerate the selloff ahead of the February employment report.
New
2025.03.08 03:34US President Donald Trump: We might do Canada tariffs tomorrow
US President Donald Trump took time out of his Oval Office address to deliver new information about impending tariffs on Canada.
New
2025.03.08 02:52Mexican Peso struggles to hold gains, loses ground versus USD
The Mexican Peso (MXN) erases earlier gains against the US Dollar (USD) and remains unable to reach a new weekly high, as the exotic pair seems to have found a floor near 20.22.
New
2025.03.08 02:50Fed's Powell: Uncertainty around Trump policies remains high
Federal Reserve (Fed) Chair Jerome Powell stuck to his cautious guns on Friday, warning that policy uncertainty makes it difficult for the Fed to enact policy adjustments.
New
2025.03.08 02:41Fed's Kugler: Inflation risks are tilted to the upside
Federal Reserve Governor Adriana Kugler indicated that rising inflation risks provided a strong argument for keeping interest rates steady for an extended period.
2025.03.08 02:27Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
