The Bank’s dilemma

Later this week the Bank of England’s Monetary Policy Committee (the MPC) is due to hold its next meeting, and once again all eyes will be on them to see if they raise rates from their current 0.75%. Most commentators are predicting a further rise, to at least 1%. But there are a number of reasons why this is not such a foregone conclusion as it might appear, and a number of issues which could cause the Bank to hesitate.

Continue reading

The continuing evolution of the ECB

In our article last week we noted that the European Central Bank (ECB) appears to be undergoing a process of transition, and evolving into a rather different organisation from the ECB of 1999, the start of the single currency. We continue this analysis, concluding that having started life as a Bundesbank clone providing very Germanic central banking, the ECB is becoming more truly pan-European, and a central bank for the whole Euro Area.

Continue reading