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Kenya also capped commercial lending rates a year ago at 4 percentage points above the central bank rate and imposed a floor on deposit rates of 70 percent of the central bank rate .
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Bank Rate is already at a record low of 0.25 percent.
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Russia's rouble firmed 0.2%, ahead of a central bank rate decision.
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Adding 25 basis points, they took the Bank Rate to 0.75 percent.
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Emergency central bank rate cuts globally only added to the investor panic.
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It is expected to hold the bank rate steady at 0.5 percent.
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Uber – Both Mizuho and Deutsche Bank rate Uber a "buy" in new coverage.
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Currency risks aside, there are almost no arguments for central bank rate hikes.
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"This is an important advantage for a central bank rate cut," he said.
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Bank Rate will then stay at 1.00 percent throughout 2020, the poll predicted.
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South Africa's rand slipped 0.2% a day before a central bank rate decision.
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The Canadian dollar firmed immediately after the central bank rate decision, but later weakened.
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Asked when Bank Rate would reach 1.5 percent, the earliest date given was 2020.
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Bank Rate has sat at a record low of 0.5 percent for seven years.
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Stronger growth data may put European Central Bank rate hikes back on the agenda.
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Specifically, it: - reinforces Bank Rate cuts, - reduces the effective lower bound of Bank Rate to close to but a little above zero, - charges a penalty rate if banks don't lend, - covers all types of lending, and - is funded by central bank reserves.
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The Norwegian crown was slightly higher before a Norges Bank rate decision at 0800 GMT.
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REUTERS POLL-BANK OF ENGLAND TO LEAVE BANK RATE AT 0.75% UNTIL 2022 AT LEAST
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A Reuters poll predicted the central bank to cut its bank rate by 25 basis points.
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The BoE this month increased Bank Rate for the first time in more than 10 years.
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The Bank of England's has held its main bank rate at 0.5 percent since March 2009.
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However, the data barely changed market wagers on a U.S. central bank rate cut this month.
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"Chances of the central bank rate cut this year are now close to zero," he said.
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Betting on central bank rate cuts was one of strategies used by buyers of OFZ bonds.
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Most economists said Bank Rate would stay at 21.65 percent until the end of next year.
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Lawmakers did, however, remove the minimum deposit rate of 70 percent of the central bank rate.
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The TFS will enable eligible institutions to borrow central bank reserves at close to the Bank Rate.
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Brazil's real climbed 2692.9%, while the Chilean peso was steady ahead of a central bank rate meeting.
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For example, cutting Bank Rate will immediately ease financing conditions for households and firms, thereby supporting activity.
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Poland's zloty was steady against the euro in the run-up to a central bank rate decision.
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After Federal Reserve chairman Powell released his congressional testimony, global central bank rate cut trend further highlighted.
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LONDON (Reuters Breakingviews) - Usually, a central bank rate rise is a signal that things are going well.
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The data has also prompted several analysts to bring forward forecasts for a central bank rate hike.
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Further Fed easing would follow a European Central Bank rate cut last week and new stimulus measures.
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"The market is trying to digest the drop in oil prices," DZ Bank rate strategist Christian Lenk said.
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Sweden's currency jumped more than one percent against the dollar on Thursday after the central bank rate decision.
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None of the 75 economists polled expect Bank Rate to be lifted from 0.75 percent on March 21.
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The actual path Bank Rate will follow over the next few years will depend on the economic circumstances.
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Under the same law, banks will have to pay depositors at least 70% of the central-bank rate.
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The Norwegian crown surged after August inflation data firmed expectations for a central bank rate hike next week.
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REUTERS POLL: BANK OF ENGLAND TO LEAVE BANK RATE AT 0.75% UNTIL 2022 (UNTIL 2021 IN AUGUST POLL)
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"Tuesday's bounce following the central bank rate meeting proved to be short-lived," said a trader in Budapest.
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Chinese onshore bonds will benefit from central bank rate cuts in the first half of 2020, it predicted.
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Meanwhile, they expect the BoE to raise its 22 pct Bank rate by 50 bps over the same timeframe.
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The dovish monetary policy stance has prompted investors to price in possible central bank rate cuts across the region.
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"The banks have no excuse with today's announcement not to pass on this cut in bank rate," Carney said.
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Australian stocks advanced 262.34% as weaker-than-expected local job data bolstered expectations for a central bank rate cute.
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JP Morgan economist Allan Monks said the likely 'neutral' range was lower than financial market forecasts for Bank Rate.
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Volatility also tends to pick up toward the end of a central bank rate rise cycle, the note said.
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After five years of political instability, the black-market price for dollars was twice the government-set bank rate.
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On an earnings call, CFO Jennifer Piepszak said JPMorgan expects up to three central bank rate cuts this year.
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Most economists now expect the BoE to raise its Bank Rate to 0.50 percent from 0.25 percent on Nov.
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That would force the BoE to cut Bank Rate - which stands at 0.75% - by 25 basis points in November.
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Financial stocks rose 21.4372% and were set for fifth consecutive day of gains, after last week's central bank rate cut.
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The "big four" banks notched up between 0.4% and 0.8% on their fourth day after the central bank rate cut.
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The peso, supported by Mexican central bank rate hikes, has also been rising in lockstep with the Mexican stock market.
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The market implied rate is now for the bank rate to reach 1.1 percent by the first quarter of 2019.
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REUTERS POLL-BANK OF ENGLAND TO RAISE BANK RATE TO 1.00 PCT IN Q4 2019 (SAME AS IN FEB POLL)
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But whatever the reason, persistently low interest rates mean we can't count on central bank rate cuts to end recessions.
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Introduced in September 2016, the cap limits lending rates to 4 percentage points above the central bank rate, now 9.0%.
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NEW YORK - MEXICO CENTRAL BANK RATE CUTS WILL BE CRITICAL FOR THE REACTIVATION OF ECONOMIC GROWTH- ECONOMY MINISTER MARQUEZ COLIN
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Since then, the combination of central bank rate hikes, weak domestic demand and base effects have helped bring prices down.
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ANZ was the only one of its peers to fully pass on Tuesday's central bank rate cut to its customers.
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On the global front, it's an action-packed week with a host of macro data and three central bank rate decisions.
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"We don't think there is any material probability of a Bank Rate hike in the foreseeable future," RBC's Sam Hill said.
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Inflation has increased across the region in the past few months, which prompted central bank rate increases in Budapest and Prague.
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The TFS will reinforce the transmission of cuts in Bank Rate to the interest rates actually faced by households and firms.
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The Bank of England has set Bank Rate at 0.75 percent and is not expected to raise it any time soon.
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Inflation data will be important ahead of the Fed meeting, and for expectations of further central bank rate hikes this year.
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European Central Bank rate-setter Benoît Coeuré and Bundesbank President Jens Weidmann are expected to speak in Frankfurt later on Thursday.
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But Carney said this did not mean market bets on a cut in Bank Rate to 0.5% this year were right.
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The BoE has held its Bank Rate at 0.5 percent since March 2009, when the global financial crisis was hammering Britain.
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Norway's currency has weakened this year despite several central bank rate hikes and hit record lows against the euro in October.
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Later on Thursday, European Central Bank rate-setter Benoît Coeuré and Bundesbank President Jens Weidmann were expected to speak in Frankfurt.
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Bucking the downtrend, Australian stocks held steady as weaker-than-expected local job data supported expectations for a central bank rate cute.
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Our call is for the Committee to cut Bank rate (by 25bps) at its August meeting, alongside the publication of fresh forecasts.
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Prices had jumped 214.98% earlier in the session on market expectations of at least two U.S. central bank rate cuts in 20.2.
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Prices had jumped 13% earlier in the session on market expectations of at least two U.S. central bank rate cuts in 21.
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Prices had jumped 22016% earlier in the session on market expectations of at least two U.S. central bank rate cuts in 20.6.
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FRANKFURT (Reuters) - Often outspoken European Central Bank rate setter Ewald Nowotny questioned the ECB's most sacred tenet on Wednesday: its inflation target.
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Financial markets see a slightly greater than 50% chance that the BoE will cut Bank Rate to 0.5% from 0.75% on Jan.
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For the next 18 months lenders will be able to borrow four-year central bank reserves at rates close to the Bank Rate.
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Last month, Uganda's central bank cut its benchmark Central Bank Rate (CBR) to 14 percent from 15 percent, its third cut since April.
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Economists largely agreed with Saunders and medians suggests borrowing costs will rise 25 basis points early next year, taking Bank Rate to 1.00%.
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That August the monetary-policy committee (MPC) launched extra quantitative easing and cut Bank Rate, the benchmark interest rate, from 0.5% to 0.2%.
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The crown eased 212.27 percent against the euro to 212.03 as bets for a Czech central bank rate hike on March 210.37 diminished.
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Worries about a new 10 percent long-term capital gains tax and fears of a central bank rate hike added to the woes.
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None of 62 economists polled by Reuters expects the bank rate to be adjusted from its record low of 0.25 percent on Thursday.
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No change is now expected to the bank rate, which has sat at 0.75% for nearly a year, until 2021 at the earliest.
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With the Bank rate at 28 percent - the lowest in the Bank's 21-year history - the governor is heading deeper into uncharted territory.
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The government capped commercial rates at 4 percentage points above the central bank rate last September, worsening already sluggish private sector credit growth.
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Many economists expect the BoE will halve its already record low Bank Rate to 0.25 percent and possibly revive its bond-buying program.
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South Korea's bonds saw continued inflows as foreign investors searched for capital gains on expectations of a central bank rate cut in June.
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By the end of next year Bank Rate will be at 1.25 percent and then nudge up to end 2018 at 1.75 percent.
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The forint eased 1.6 percent and the crown only 0.2 percent, while the leu - backed by central bank rate hikes - firmed 0.7 percent.
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Economists said the decline in 2018 forecasts was a surprise, but maintained forecasts for a central bank rate hike to come later this year.
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Investor response to an expected central bank rate cut on Monday could also shore up the local currency in the week ahead, Amponsah added.
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The combination of the effects on demand and supply in the exchange rate ... could result in either a lower or a higher bank rate.
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The Brazilian real reversed early losses to trade up 0.4%, while Mexico's peso jumped 1% ahead of a central bank rate decision this week.
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The bank said all customers with mortgages which track the Bank Rate will see a reduction of 0.5% in their rates by April 1.
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China has a long history of using two interest rate tracks to drive its lending sector - a market-based rate and a benchmark bank rate.
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Lowered inflation expectations have allowed the Central Bank of Kenya to lower the benchmark Central Bank Rate by a total of 150 bps in 103.
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By increasing the bank rate, the MPC would make it costlier to borrow and more rewarding to save, reducing demand and bringing inflation back down.
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The so-called Big Four banks dominate Australia's mortgage market and their responses to central bank rate changes are closely watched by investors and politicians.
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But that won't deter the Bank of England from raising Bank Rate soon after March, adding 25 basis points to take it to 1.0 percent.
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That 0.25 percent was where the BoE put Bank Rate just over a year ago, shortly after British voters elected to leave the European Union.
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Brexit is still "the major influence on both the outlook for the UK economy and, by extension, the path of the bank rate", he added.
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Declining expectations for European Central Bank rate hikes, slowing economic growth and concerns about Brexit have left European investment bank trading floors struggling for business.
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South Africa's rand was 0.5% weaker ahead of the results of a central bank rate meeting, the first since elections were held earlier this month.
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He voted in July last year to cut rates, a month before the rest of his peers decided to lower Bank Rate to 0.25 percent.
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In her speech on Monday, Tenreyro said she expected that a couple more increases in Bank Rate would be needed over the next three years.
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President Donald Trump took aim at the Federal Reserve again, this time following an European Central Bank rate cut Thursday that sent the euro lower.
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"We think that current tendencies ... create conditions for a further reduction in the central bank rate," analysts at OTP Bank Ukraine said in written comments.
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"There is some relief that a direct confrontation between the U.S. and Russia over Syria has been avoided," said DZ Bank rate strategist Daniel Lenz.
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The cap, set at 400 basis points above the central bank rate, was intended to spur personal and corporate investment by holding down interest rates.
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"Unless today's data confirms slowing price developments, there is limited scope of investors' central bank rate expectations to fall," Credit Agricole strategists wrote in a note.
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Only 12 of 55 economists polled with a view on Bank Rate expected a cut this year or next and 19 had an increase pencilled in.
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At the time it was introduced, the government said the cap - at 4 percentage points above the central bank rate - would help lower costs of borrowing.
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Other emerging market currencies struggled to make headway with Turkey's lira falling 78.326.21 percent ahead of the first central bank rate-setting meeting since the election.
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When used with a smartphone app, Aria also holds customer credit card information with "bank-rate security," for easier PCI compliance, according to the press release.
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The MPC can lower Bank Rate, increase the size of the TFS, and expand the scale or variety of assets held in the Asset Purchase Facility.
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A handful of economists said Bank Rate would be cut to just 0.10 percent next quarter, soon after May has pulled the trigger on Article 50.
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The BoE has previously said it will not start to sell down its 435 billion pounds of gilt holdings until Bank Rate rises to around 1.5%.
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The average bank loan rate was up 101 basis points to 6.9 percent, and the average non-bank rate up 426 basis points to 11.42 percent.
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Sterling trod water after falling through the $1.36 line in the previous session as investors further reduced bets of a central bank rate hike next week.
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The cap - 400 basis points above the central bank rate, now 10.0 percent - is intended to spur personal and corporate investment by holding down interest rates.
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Bank Rate was cut to a record low 0.25 percent in the months after the Brexit referendum and won't be lifted until 2019, the poll found.
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Nearly two thirds of the 60 economists polled by Reuters on Wednesday said would chop at least 25 basis points from the 303 percent Bank Rate.
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Sterling traded near a two-week low in the wake of the Bank of England's decicion on Thursday to keep its Bank Rate unchanged at 0.75%.
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While Denmark's last central bank rate cut was less than a quarter of a percent in 2015, the country has a very low rate currently, at .
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"The scope for further asset purchases is substantial, while the obstacles we saw to reducing Bank Rate below 0.5 percent are no longer material," he said.
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Tokayev spoke at a meeting with government officials in the oil-exporting nation's western Mangistau province, ahead of an April 15 central bank rate policy review.
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The European Central Bank rate-setting Governing Council will next meet on June 8 and markets expect only an incremental change in the bank's policy message.
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Interest rates that are set every day in the global bond markets are already leaping higher, in anticipation of central bank rate increases later this year.
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The BoE voted 7-2 to increase its benchmark Bank Rate to 0.50 percent from 0.25 percent, but said it expected only "very gradual" further increases.
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But medians from the poll said Bank Rate would fall to 0.1 percent in November and then stay there until at least the end of 2018.
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"The challenge for monetary policy in 2017 is enormous," Finamex said in a client note, forecasting that central bank rate hikes will continue into next year.
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NEW YORK (Reuters) - Mexican Economy Minister Graciela Marquez Colin said on Thursday that central bank rate cuts will be critical for the reactivation of economic growth.
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The banks have no excuse, with today's announcement, not to pass on cut in bank rate and they should write to their customers and make that point.
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The MPC can lower the Bank Rate, increase the size of the TFS, and expand the scale or variety of assets held in the Asset Purchase Facility.
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It will be 2021 before another 25 basis points are added, the poll found, and two economists have pencilled in a cut to Bank Rate next year.
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Still, with the trade sector far from being back on steady footing, the door may be open to a fifth straight central bank rate cut this year.
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Under the TFS, therefore, banks were able to borrow an amount equal to up to 5% of their existing loan books, at a rate near Bank Rate.
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In June, Finance Minister Henry Rotich sought to repeal the cap, at four percentage points above the central bank rate, but lawmakers blocked that attempt in August.
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Existing mortgage rates that tracked Bank Rate would fall, but credit card rates and new business lending - which is sensitive to the economic outlook - would prove stickier.
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A move to equities from bonds would mark a contrast over 2015 and 2016, when debt markets rallied after aggressive central bank rate cuts, far outperforming shares.
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Eventually, the United States, and other countries, too, should rely on market forces, not central bank rate manipulation, to establish interest rates across the entire yield curve.
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Private sector credit growth slowed sharply after lawmakers limited the amount of interest commercial banks can charge customers at four percentage points above the central bank rate.
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Inflation would only fall back to close to its 2 percent target if Bank Rate rose in line with the "gently rising" path implied in financial markets.
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Faced with a weaker outlook, the BoE's rate-setters voted 22.6-2.63 to keep Bank Rate at 22.6 percent, in line with a Reuters poll of economists.
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"We maintain our request to have our earnings, which were previously pegged in United States dollars, be paid at the prevailing inter-bank rate," the ZHDA said.
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The index had surged 1.5 percent on Monday following firm U.S. jobs numbers, while low wage growth eased concerns about inflation and faster central bank rate hikes.
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Overnight in Asia, China's CSI2603.60 blue chip stocks index lost 0.5% after gaining sharply on Monday, encouraged by a central bank rate cut and government stimulus hopes.
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Nevertheless, investors have put an almost 90 percent chance on a rise in Bank Rate to 0.75 percent from 0.50 percent on Thursday, according to market prices.
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Policymakers have repeatedly stressed any increases to borrowing costs would be gradual, and even by the end of 2018 the Bank Rate will only have reached 783 percent.
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Fifteen of the 17 analysts covering the bank rate it a "buy" or a "hold," with the remaining two labeling it a "sell," according to Thomson Reuters data.
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The government caps the rate banks can charge their customers for loans at 4 percentage points above the central bank rate, saying they were charging very high rates.
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Bank of Uganda (BoU) Governor Emmanuel Tumusiime-Mutebile told a news conference the bank had dropped the Central Bank Rate (CBR) to 16 percent from 17 percent previously.
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None of the 75 economists polled expect Bank Rate to be moved from 0.75 percent when the Bank of England's Monetary Policy Committee announces its decision next month.
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On September 14th a law capping the interest rates that commercial banks can charge at four points above the central-bank rate is due to come into force.
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Adjusted for the BoE's 2 percent inflation target, this implies that a level of Bank Rate of 1.5-2.0 percent will ultimately be needed to keep inflation steady.
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The cut in the Bank Rate and the measure intended to ensure banks passed it on to consumers - known as the Term Funding Scheme (TFS) - gained unanimous support.
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At one level, increasing Bank Rate to 0.5 percent from 0.25 percent would represent only a reversal of last year's emergency rate cut after the shock Brexit vote.
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A Reuters poll of economists published on July 26 predicted the British central bank would cut its benchmark Bank Rate to 0.25 percent from 0.50 percent on Aug.
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Global stock markets began to tumble last Friday after a healthy U.S. labor market report sparked fears of rising inflation which could trigger more central bank rate hikes.
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The Czech crown was flat before a central bank rate decision that is expected to keep policy unchanged but could signal the timing of its first rate rise.
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However, a G7 official told Reuters on Tuesday that a statement being drafted so far excludes direct calls for new government spending or coordinated central bank rate cuts.
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Interest rate futures point to a more than 90% chance of a 25 basis-point cut in Bank Rate before BoE Governor Mark Carney's term ends next January.
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The BOE which decided unanimously to keep its bank rate unchanged at 0.75%, said Brexit uncertainty was causing slack to re-emerge in Britain's economy and damaging productivity.
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IMOEX was among the best global performers in 22020 as central bank rate cuts and increasingly high dividend payments by Russian companies drew buyers in to Russian equities.
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But lawmakers have continued to insist they are not ready to remove the upper limit of commercial lending rates at 4 percentage points above the central bank rate.
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Financials were the biggest drag, as consumer prices data issued by the Australian Bureau of Statistics was underwhelming, quelling any expectations of an imminent central bank rate hike.
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If the lira remains weak, "it will create the perception that the central bank rate hike was ineffective and this may lead to a further worsening," the analyst said.
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El-Erian, formerly CEO of investment giant Pimco, appeared on CNBC ahead of New York Fed President John Williams telling Friday that the central bank rate hikes next year.
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Kenya's government capped lending rates last September at 4 percentage points above the central bank rate, saying they were too high and banks had failed to lower them repeatedly.
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It retreated to 1.8353, still a shade firmer from Monday, after central bank rate setters said they saw no need to change interest rates in reaction to the data.
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BUDAPEST, June 210.24 (Reuters) - Hungary's forint weakened slightly ahead of a central bank rate decision due later on Tuesday which is expected to leave rates flat despite inflation pressures.
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Expanding the stock of gilts held in the Asset Purchase Facility by 60 billion pounds will reinforce the transmission of lower Bank Rate to longer-term market interest rates.
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The move is evidence of a key change in central bank rate expectations, Bob Michele, chief investment officer and head of fixed income at JP Morgan Asset Management said.
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Turkey's lira marked time ahead of a central bank rate decision due later in the day, at which the key rate is expected to be left at 24 percent.
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It will add another 25 basis points in 2019, but if no deal is reached with the EU, economists largely said they expected to trim their Bank Rate forecasts.
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A majority of economists, 290 of 231, said the BoE will have lifted Bank Rate to 1.0 percent or higher by the end of the first quarter next year.
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The index had surged 1.5 percent on Monday following firm U.S. jobs numbers on Friday, while low wage growth eased concerns about inflation and faster central bank rate hikes.
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The yield on 10-year U.S. Treasuries jumped more than 0.25 percentage point — the size of a typical central bank rate change — in each of the last two sessions.
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More recently, in 2014, Turkey suddenly ratcheted up a key central bank rate to 10 percent from 4.5 percent in order to stop a sell-off in the lira.
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Expectations for a European Central Bank rate cut have also risen; money markets now price a more than 80% chance of a 10 basis point rate cut in July.
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Expectations for a European Central Bank rate cut have also risen; money markets now price a more than 20.1% chance of a 0.53 basis point rate cut in July.
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Combining possible interest rate cuts and the prospect of more asset purchases, Carney said the BoE's current armory was the equivalent of cutting Bank Rate by 2.5 percentage points.
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However, analysts expect the dollar to come under pressure in coming months with diminishing prospects for U.S. central bank rate hikes in 2019, which has driven Treasury yields lower.
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Mwangi said the cap on rates, at 4 percentage points above the central bank rate of 10 percent, had made it difficult for banks to lend to risky customers.
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Besides yellow fever, few indicators are as telling as the kwanza currency, down more than 40 percent in the last year against the dollar at the official central bank rate.
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HOLD IT None of the 75 economists polled expect Bank Rate to be moved from 0.75 percent when the Bank of England's Monetary Policy Committee announces its decision next month.
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Twenty-seven of 53 respondents in the poll predict a cut in Bank rate in the fourth quarter, with 22 of them saying it will be by 15 basis points.
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The lira fell more than one percent to 6.2340 while Russia's rouble dropped 13 percent to 68.17 as the effect of a Russian central bank rate hike on Friday faded.
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The Australian dollar, weighed down recently by a central bank rate cut and a drop in the price of iron ore, remained on the back foot against a buoyant dollar.
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"We have not formally changed our BoE Bank Rate forecast (no hikes in 2017 or 2018), but we will review the forecast in the light of incoming data," Walker said.
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Geopolitical twists have created a rocky backdrop for private and investment banks, with transaction levels and client sentiment susceptible to uncertainties ranging from central bank rate cuts to Chinese-U.
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All three major U.S. stock indexes opened Wednesday more than 1 percent lower following a trio of central bank rate cuts and further depreciation of the Chinese currency, the yuan.
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Adjusted for the BoE's inflation target, this would imply Bank Rate of 2-3 percent to keep growth and inflation rates stable when the economy is running at full capacity.
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S. trade war and growing expectations for central bank rate cuts have pushed bond yields across the world lower this year, deepening the pool of assets with sub-zero yields.
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But the Monetary Policy Committee (MPC) again split 20.5-2 in favour of keeping Bank Rate at 0.75%, with external members Michael Saunders and Jonathan Haskel voting for a cut.
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The BoE is widely expected to cut Bank Rate in November to 0.1 percent from last week's record-low 0.25 percent, but it has ruled out taking rates below zero.
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Commercial interest rates were capped in 2016 at 4 percentage points above the benchmark central bank rate — currently 9% — by lawmakers who said they were concerned about high loan costs.
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"The banks have no excuse with today's announcement not to pass on this cut in Bank rate, and they should write to their customers to make that point," he added.
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"Market seen in negative note ahead of the central bank rate announcement as many investors expect a rate hike," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.
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The next move won't then come until 2020, when the Bank will add 50 basis points over the course of the year, putting Bank Rate at 1.5 percent, the poll found.
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"Gilts should rally due to expectations of bank rate cuts 'towards zero' and another round of quantitative easing coupled with a drop in inflation expectations," the RBC Capital Markets analysts said.
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On Monday, European Central Bank rate-setter Ardo Hansson said the ECB could end its bond purchase scheme in one go after September if the economy and inflation develop as expected.
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George Buckley of Nomura, a bank, suggests that as banks' creditworthiness has continued to improve in the past year, their funding costs in private markets have fallen relative to Bank Rate.
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"Despite the weak outlook, the Bank of England will now almost certainly raise the Bank Rate by 25 basis points ... on 2nd November," said Daniel Vernazza, chief UK economist at UniCredit.
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The MPC recognises the risk that, when interest rates are very low, Bank Rate cuts might not be fully passed on to the interest rates actually faced by households and firms.
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The result will be a de facto boycott that will bankrupt dozens of Israeli companies and render their Palestinian employees -- who earn far more than the average West Bank rate -- unemployed.
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Its net interest margin, excluding treasury and markets units, rose by an unspecified amount, as its decision to raise mortgage rates without a change in the central bank rate paid off.
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Respondents were less concerned about household debt and property market instability, in line with broad analyst views that the case for an additional central bank rate hike next year is declining.
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Economists are increasingly optimistic good times will return helped by two back-to-back central bank rate cuts, tentative signs of a property market turnaround and government tax rebates to households.
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In the wider markets, world stocks rose and equity volatility neared a record low ahead of a raft of central bank rate decisions, while newly launched bitcoin futures shot above $18,1203.
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A slim majority in a Reuters poll thinks the Bank of England will trim the Bank Rate by another 15 basis points, dropping it to a record low of 0.1 percent.
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It built on those gains on Friday after BoE policymaker Gertjan Vlieghe said "the appropriate time for a rise in Bank Rate might be as early as in the coming months".
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The BoE's nine rate-setters voted 22020-21.6 to increase the Bank Rate to 21.7 percent from 23 percent, reversing an emergency cut made in August 22 after the Brexit vote.
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But the BoE said all nine MPC members backed its previous guidance that any future increases in the Bank Rate would be "at a gradual pace and to a limited extent".
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The forecasts were based on bets by investors who expect another rate hike only in late 2019 or early 2020, with Bank Rate creeping up to 1.1 percent in late 23.
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SPX tumbling 12%, its biggest drop since "Black Monday" three decades ago, as a series of emergency central bank rate cuts globally only added to the recent sense of investor panic.
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Expectations for a European Central Bank rate cut have also risen: money markets are now pricing in a more than 23% chance of a 211 basis point rate cut in July.
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A person familiar with the reform plan said the Bank of England wants to "own" the key interest rate benchmark which tracks the BoE's Bank rate, and hence shapes monetary policy.
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"It's important for them to know that the market rate is close enough to the Bank Rate to ensure that market rates are not getting out of kilter," the source added.
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The forint moved off a record low touched last week and Poland's zloty edged up before a central bank rate decision, with markets widely expecting it to maintain rates at 210.33%.
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As inflation is predicted to remain below the Bank of England's 20203% target until well into 22020, Bank Rate is expected to be left unchanged at 230% until at least 238.
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The Australian dollar was the sole spot of strength in the global currency markets as it bounced 0.3% after a central bank rate cut decision offered few clues about future easing.
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At the same time, it raised its outlook for the three-month inter-bank rate (PRIBOR) - seen as proxy for the central bank's main rate - by 0.1 percentage point to 2.1 percent.
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The industry-wide investigation concerns customers who should have been given the option of a cheaper "tracker" mortgage that follows the low European Central Bank rate or kept on a better rate.
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Scenario 2: Market path for Bank Rate 50 bps higher by Q3 2022, 10% higher trade-weighted sterling, 40 bps higher 10-year gilt yield, lower credit spreads and higher equity prices.
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Trump, who nominated Powell to be Fed chairman, has been one of Powell's biggest and most vocal critics, blaming central bank rate increases for slowing the economy and roiling the stock market.
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But BoE officials stress there are limits to how much help they can provide with Bank Rate only a fraction above its level of most of the period since the financial crisis.
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The industry-wide probe concerns customers who should have been given the option of a cheaper "tracker" mortgage that follows the low European Central Bank rate or kept on a better rate.
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After a strong 2018, analysts expect the dollar to come under pressure in coming months with diminishing prospects for U.S. central bank rate hikes in 2019, which has driven Treasury yields lower.
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Interest rate markets are discounting 100 basis points of central bank rate cuts over the next year, which would bring the benchmark Selic rate, already at a record-low 6.50%, to 5.50%.
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The currency was largely flat on Wednesday, trading just above $0.6500 and lingering near seven-month lows, largely on the back of global trade concerns and this month's central bank rate cut.
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In the shorter term, the Bank Rate implied by a so-called equilibrium real interest rate, or "r*", was likely to be somewhat lower, the BoE said, without giving a precise estimate.
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But Indian business executives say they are more concerned about the impact of soured loans on bank balance sheets, which prevent them from getting the full benefit of central bank rate cuts.
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Russia's rouble-denominated MOEX index was among the best global performers in 22020 as central bank rate cuts and increasingly high dividend payments by Russian companies drew buyers in to Russian equities.
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The fine is the first levied in a series of investigations into Ireland's main banks over customers who were denied loss-making tracker mortgages, which follow the low European Central Bank rate.
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Most Monetary Policy Committee (MPC) members expected to cut Bank Rate again this year to a rate "close to, but a little above zero", if the economy performed as poorly as forecast.
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Members of the BoE's Monetary Policy Committee voted to cut Bank Rate for the first time since August 2016, to 0.25 percent from 0.75 percent, the central bank said in a statement.
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Earlier this week Britain's 10-year government bond yield fell below the Bank of England's bank rate for the first time in a decade after dovish comments from BoE Governor Mark Carney.
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U.S. stocks began to wobble last Friday after a healthy U.S. labour market report sparked a spike in bond yields and fears of rising inflation which could trigger more central bank rate hikes.
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The BoE voted 7-2 to increase its benchmark Bank Rate to 0.50 percent from 0.25 percent, but it expected only "very gradual" further increases would be needed over the next three years.
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Instead it will wait until November to act again, trimming another 15 basis points from Bank Rate, sending it to a new record low of 0.1 percent, an unchanged prediction from a Sept.
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However, if you're in the market for a car loan, you'll save big with a low annual interest rate of 0003 percent—more than two percentage points lower than the average bank rate.
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"If PE buys TDC and swap TDC's current bond with PE's shareholder bonds, it can milk up to 10 percent dividend in Denmark where bank rate is close to 0 percent," it said.
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Thursday brings the latest policy announcement from the Bank of England, where the Bank Rate will likely remain unchanged at 0.5 percent but a dovish tone from the central bank is expected nonetheless.
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"If the data continue to beat expectations, our call that the MPC will cut Bank rate from 0.25 percent to 0.10 percent on Nov 3 might start looking shakier," wrote economists at Investec.
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SYDNEY, Nov 13 (Reuters) - Economists at National Australia Bank on Wednesday pushed out their call for the next central bank rate cut to February from December and highlighted the possibility of unconventional policies.
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On the other hand, the BoE might need to cut Bank Rate to a fraction above zero after a no-deal Brexit while repeated Brexit delays could also make a rate cut necessary.
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Kristin Forbes, who is due to leave the BoE in June, cast the sole vote in favor of raising Bank Rate to 0.5 percent, the first Monetary Policy Committee split since last July.
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Speculation of more central bank rate cuts and possible fiscal stimulus saw U.S. Treasury yields edge up from historic lows, and oil prices paused after the steepest fall since the 1991 Gulf war.
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But while events like a central bank rate decision, inflation data or a shift in monetary policy have traditionally driven markets, it is the big shift to political events that has surprised investors.
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MSCI's broadest index of Asia-Pacific shares outside Japan had inched up 0.23% while Japan's Nikkei rose 0.6% and Australia's benchmark by 0.8%, some of that coming after the central bank rate cut.
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The UK currency built on those gains on Friday after BoE policymaker Gertjan Vlieghe said "the appropriate time for a rise in Bank Rate might be as early as in the coming months".
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That's why, at its meeting yesterday, the MPC agreed an exceptional package of measures comprising: - a 25 basis point reduction in Bank Rate to 103 percent; - a new Term Funding Scheme (TFS) to reinforce the pass-through of the cut in Bank Rate to the borrowing rates actually faced by households and firms; - a new programme of private sector asset purchases with up to 10 billion pounds of UK corporate bonds; and - a 60 billion pound expansion of gilt purchases.
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Over seven years ago, in the depths of the financial crisis, the Monetary Policy Committee cut Bank Rate to a record low 0.5 percent and embarked on a 375 billion pound quantitative easing program.
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The Bank said on Thursday its nine rate-setters were unanimous in their decision to keep Bank Rate at its new record low of 0.25 percent, the lowest in the BoE's 322-year history.
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"Growth in mortgage lending continues to be driven by remortgaging, as borrowers take advantage of attractive deals ahead of an anticipated Bank rate rise," said Eric Leenders, UK Finance's managing director for personal finance.
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Euro zone yields rose from but remained close to last week's multi-year low, after weak data from China fanned concern about the impact of a war and expectations of central bank rate cuts.
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The cut in Bank Rate, the new Term Funding Scheme, the new corporate bond purchases and the expansion of gilt purchases work through multiple channels, are mutually reinforcing, and more powerful as a result.
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Economists polled by Reuters took him at his word and medians suggest a 25 basis point increase to Bank Rate to 1.00 percent would come in the fourth quarter, later than thought last month.
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Most economists taking part in a Reuters poll had expected the central bank to halve its Bank Rate to 0.25 percent in order to cushion the economy from the shock of the Brexit vote.
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Financial futures markets - taken at face value - point to an 80% chance that the BoE will lower Bank Rate by a quarter point to 0.50% before Carney steps down at the end of January.
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"This ... will make it difficult for the monetary committee to hike the central bank rate by any notable degree as long as the current framework of the price stability target is maintained," he said.
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The big four, barring Australia and New Zealand Banking Group, on Tuesday also resisted public pressure to pass on a central bank rate cut in full to customers, risking a rebuke from the government.
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The BoE said on Thursday that its nine-member Monetary Policy Committee voted 202022-2 to keep Bank Rate at 0.75%, in sharp contrast to forecasts in a Reuters poll for a unanimous decision.
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But hopes of a smooth departure from the EU, expectations for a rise in the bank rate, and a dollar hit by a growing U.S.-China trade row, restored some strength earlier this year.
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South Korea's won fell to a near two-week trough, while the Indonesian rupiah bank rate decision on Thursday.
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Speculation of more central bank rate cuts and possible fiscal stimulus did see U.S. Treasury yields edge up from historic lows, and oil prices paused after the steepest fall since the 1991 Gulf war.
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"At its special meeting ending on 10 March 2020, the Monetary Policy Committee (MPC) voted unanimously to reduce Bank Rate by 50 basis points to 0.25%," the Bank of England said in a statement.
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"If uncertainty over the future trading arrangement or subdued global growth continue to weigh on demand, then my inclination is towards voting for a cut in Bank Rate in the near term," she continued.
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Investors are concerned the threat of U.S. sanctions will persist through the coming year, as real interest rates have narrowed because of due central bank rate cuts, said Phoenix Kalen, strategist at Societe Generale.
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The common currency fell 0.7% on Monday, its biggest-one day decline since March as disappointing economic data triggered a tumble in bond yields and boosted expectations for a European Central Bank rate cut.
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Increased expectations of U.S. central bank rate cuts pulled short-dated yields lower on Thursday, steepening the yield curve ahead of retail sales data later on Friday and the meeting of Fed policymakers next week.
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"Bank rate can be cut further, closer to zero, and quantitative easing can be stepped up," Ian McCafferty, an external member of the Monetary Policy Committee, wrote in an op-ed piece for the Times.
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A Bank Rate study found last month that low-income workers (those who earn $30,000 a year or less) spend on average $412 a year on lottery tickets, and 28% buy a ticket every week.
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VILNIUS (Reuters) - The political situation in Italy should not pose a threat to the euro zone despite the gyrations it is causing on financial markets, European Central Bank rate setter Vitas Vasiliauskas said on Monday.
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"If the economy continues to tick along, as we expect, then we might expect some further limited and gradual rises," central bank rate-setter Andy Haldane told the Daily Mail newspaper, repeating familiar BoE language.
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"We see a 60 percent chance that the nine-member MPC votes to cut the bank rate, if so, probably by 25bps," Kallum Pickering, senior U.K. economist at Berenberg, said in a report on Monday.
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The Australian dollar was off 0.2% at $0.6884 after the chief economist of Westpac Banking Corp said he expects three central bank rate cuts this year, one more than the market consensus for two easings.
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None of 62 economists polled by Reuters expects the bank rate to be adjusted from its record low of 0.25 percent, as the central bank monitors the course of Brexit negotiations with the European Union.
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"The question is whether there's more to come...the economic momentum, as showed by company earnings is getting worse," Teh said, adding it would probably take a central bank rate cut to arrest the decline.
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That may not stop the Bank from trimming another 15 basis points from borrowing costs, possibly as soon as next month, sending Bank Rate to a new record low of 0.1 percent, the poll found.
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Private sector credit growth has been sluggish since the government capped commercial lending rates at four percentage points above the central bank rate in September 2016, after lawmakers said they were concerned about high rates.
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LONDON, March 29 (Reuters) - Money market expectations for a European Central Bank rate rise as early as December were scaled back on Wednesday after a report that policy makers are wary of changing their message.
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It urged the government to stick to its fiscal consolidation path and to review last year's changes to the banking law, which capped commercial lending rates at 4 percentage points above the central bank rate.
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The rate cap, which limited commercial lending rates at 4 percentage points above the central bank rate and set a minimum deposit rate of 70 percent of the benchmark, has squeezed margins across the industry.
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On the other hand, Australian neobank Xinja has taken a drastically contrasting approach, choosing to hold its 2.25% interest rate steady despite a central bank rate cut, but suspending new account opening to limit costs.
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Markets have not priced in a cut, and most in the poll expected Bank Rate to remain steady at 225%, a level the BoE had indicated was the floor for rates before the latest crisis.
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Medians in the latest poll predict no move from the Bank for over a year and it is then expected to add 25 basis points to borrowing costs and take the bank rate to 1.00%.
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The cut was the first move to take place outside the BoE's normal schedule since the 22020 financial crisis, and takes Bank Rate back to the record low it reached after 24.8's Brexit referendum.
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Markets have not priced in a cut, and most in the poll expected Bank Rate to remain steady at 225%, a level the BoE had indicated was the floor for rates before the latest crisis.
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The industry-wide compensation scheme concerns customers who should have been given the option of a cheaper "tracker" mortgage that follows the low European Central Bank rate or kept on a better rate years ago.
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Analysts nevertheless expected to see more rate cuts this year, with the central bank rate projected to fall to 10 percent in the third quarter and to 9 percent by the end of the year.
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BANK OF ENGLAND MPC MINUTES - SHOULD THE MPC NEED TO PROVIDE FURTHER MONETARY STIMULUS, THERE WERE A NUMBER OF OPTIONS AT ITS DISPOSAL, INCLUDING CUTTING BANK RATE FURTHER, ENLARGING THE TFSME, AND EXPANDING ASSET PURCHASES
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Euro zone yields rose but remained close to last week's multi-year lows, hurt after weak data from China fanned concern about the impact of a trade war and expectations of central bank rate cuts.
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A Reuters survey of economists showed that 39 of 60 respondents expected the central bank to announce a quarter point cut to the 0.5 percent bank rate when it issues its statement at 7 a.m. EDT.
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LONDON, Sept 14 (Reuters) - Disappointing Chinese data weighed on emerging market assets on Thursday, capping stocks and dragging on some currencies, while Turkey's lira touched a two-week low ahead of a central bank rate decision.
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"Halifax's data is very noisy, so we doubt September's data signal that the (Bank of England's) increase in Bank Rate in August has pushed the housing market over the edge," Samuel Tombs of Pantheon Macroeconomics said.
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None of the 75 economists polled by Reuters expect the BoE's Monetary Policy Committee to raise Bank Rate from 0.75 percent this month, and only half a dozen predict a rate rise before Brexit is due.
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SYDNEY, July 2 (Reuters) - Two of Australia's biggest lenders, Commonwealth Bank of Australia and National Australia Bank, resisted public pressure to pass on a central bank rate cut in full, risking a rebuke from the government.
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There were also responses about handling unexpected expenses, like paying off a hospital bill or a car repair—something more than half of Americans said they couldn't afford, according to a recent survey from Bank Rate.
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Businesses which sign up can borrow between 30,000 shillings and 250,000 shillings, at a 9% annual interest rate - equal to the central bank rate - with repayment periods of one month to 12 months, the association said.
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Businesses which sign up can borrow between 30,000 shillings and 250,000 shillings, at a 9% annual interest rate - equal to the central bank rate - with repayment periods of one month to 12 months, the association said.
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In general, markets are a whole lot better at pricing in short-term ups and downs — say a possible central bank rate increase, or a bad quarter of earnings — than they are longer-term existential risks.
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Hundreds of billions of dollars in relief money to combat the spreading virus, central bank rate cuts and liquidity injections, fiscal stimulus by governments -- none of these have calmed investors who are frantically exiting risky assets.
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LONDON (Reuters) - The Bank of England will wait until its November meeting before slicing 15 basis points from Bank Rate in an effort to cushion the expected blow from the Brexit vote, a Reuters poll found.
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A bond market selloff began on Friday after a report that European Central Bank rate-setters agreed last week to start reducing bond purchases, and has accelerated this week as markets brace for considerable bond supply.
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TOKYO (Reuters) - The British pound rose to $1.4355 on Tuesday, hitting its highest level since the Brexit referendum in June 2016, supported by hopes of a better Brexit deal and expectations of a central bank rate hike.
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The central bank rate was reduced to 9.5 percent in March to stimulate economic growth but policymakers have expressed concerns that the cap had made it difficult to assess the effectiveness of monetary policy actions like that.
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COLOMBO, Aug 3 (Reuters) - Sri Lankan shares rose on Wednesday, heading for their fifth straight session of gains, as investors continued buying shares hoping for improved macro economic fundamentals after the central bank rate hike, analysts said.
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Goldman expects the Bank of England to announce a 25-basis point cut in its bank rate, gilts and corporate purchases and an extension of the Funding for Lending scheme – which was designed to boost bank lending.
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"The committee remained of the view that, were the economy to follow the path expected in the November Inflation Report, further modest increases in Bank Rate would be warranted over the next few years," the BoE said.
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"Bank rate can be cut further, closer to zero, and quantitative easing can be stepped up," McCafferty said, but added that he would advocate a more cautious stance until there was more clarity over the economic situation.
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But Broadbent said the BoE would not use it as a back-door way to introduce negative interest rates - something some analysts have speculated about, given Carney's firm opposition to cutting the main Bank Rate below zero.
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If Britain can ease its way out of the EU with a deal, it could raise Bank Rate — currently 0.75% — to 1.0% in one year, 1.25% in two years and 1.75% in three years' time, he said.
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"Coupled with signs of a weaker global outlook, recent developments likely lengthen the period until there is a sufficient pick-up in inflationary pressures for me to vote to raise Bank Rate," Tenreyro said in a speech.
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All but two of the 59 economists polled in the past few days said Bank Rate would be left at 0.25 percent on September 15 and none expected any change to the central bank's asset purchase program.
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This is really about the transmission of those bank rate cuts to the real economy as opposed to a scheme to incentivise certain amount of lending; that was the old FLS, this is designed for a different purpose.
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The Bank of England has lifted Bank Rate twice since the June 2016 referendum, but borrowing costs remain very close to record lows and expectations for a rate hike later this year are far from set in stone.
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NEW YORK (Reuters) - The interest rates derivatives market needs to develop contingency plans in its contracts in case the London interbank offered bank rate (LIBOR) ceases to exist, a special adviser at the Federal Reserve said on Thursday.
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Tracker mortgages, which follow the European Central Bank rate, were sold in Ireland prior to the financial crisis and have proven significantly cheaper than variable or fixed rate mortgages as ECB rates have long been at record lows.
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Weak economic data and inflation, global trade tensions and risks such as the consequences of Brexit have driven concern about world growth, fuelling market expectations of central bank rate cuts and sparking hefty falls in government bond yields.
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WARSAW, June 23 (Reuters) - Increased uncertainty regarding domestic and external developments was an argument in favour of keeping interest rates stable in June, minutes from this month's meeting of the central bank rate-setting panel showed on Thursday.
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The BOE is seen eventually hiking its benchmark bank rate 25 basis points to 0.75 percent by the end of June, according to the consensus forecast, from a record low 0.50 percent that has stood since early 2009.
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Banregio, along with other banks helped by government policies aimed at increasing small businesses' borrowing options, has succeeded in focusing on the once neglected business segment, but a recent central bank rate hike may lead to a reassessment.
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The BoE said its nine rate-setters voted 7-2 to increase its benchmark Bank Rate to 0.50 percent from 0.25 percent, but it expected only "very gradual" further increases would be needed over the next three years.
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FRANKFURT, June 16 (Reuters) - Any further European Central Bank rate cuts would carry increased risks so the bank is taking a very cautious stance in its interest rate policy, ECB Executive Board member Yves Mersch said on Thursday.
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That left the euro mired at its lowest level in more than a week as disappointing economic data triggered a tumble in bond yields and boosted expectations for a central bank rate cut in the common currency bloc.
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The centrist Dallas Fed President Robert Kaplan advocated late on Thursday a go-slow approach on further hikes which chimed with Fed chair Janet Yellen's comments that the central bank rate would not go "all that much further".
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If the BoE does cut its Bank Rate to the lowest level in its 322-year history, it will join the Bank of Japan and the Reserve Bank of Australia, which both undertook unprecedented stimulus in the past week .
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The recent trend for banks to lend below the central bank rate underscores how previously tight monetary conditions are easing as rouble liquidity is boosted by government spending, reducing the need for the central bank to cut policy rates.
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UK banks and building societies could borrow up to 100 billion pounds over the next year at rates that neutralise the effects that could otherwise cause them not to pass on the new lower Bank Rate to end borrowers.
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Euro zone bond yields rose from, though remained close to, the multi-year low hit last week after weak data from China fanned concern about the impact of a bitter trade war and expectations of central bank rate cuts.
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DUBLIN (Reuters) - European Central Bank rate setter Philip Lane shrugged off a selloff in euro zone government bonds since Donald Trump won the U.S. presidential election, playing down the significance of "day-by-day" market moves for ECB policy.
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The Kenya Bankers Association has said at least 1 million "risky" customers were shut off from credit when the government imposed the cap, which limits commercial rates to within 4 percentage points of the central bank rate, currently 9%.
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"To take an extreme example, if the MPC concluded the natural rate was set to rise by 1 percentage point over the next two years, we could look forward to a much steeper path for Bank Rate," she said.
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SEOUL (Reuters) - South Korea's consumer inflation faltered to its slowest on record in August while second quarter economic growth was revised down on weaker exports, firming up the case for central bank rate cuts as early as next month.
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Governor Andrew Bailey, who has been in the job for less than two weeks, and other top BoE officials have suggested they will not cut the Bank Rate from its new all-time low of 0.1% into negative territory.
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"The ADP payrolls report was slightly disappointing, and if replicated in Friday's jobs numbers, could prompt speculation about the prospect of the Fed being a little more dovish at next week's central bank rate meeting," CMC Markets told clients.
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In an attempt to protect margins, three of Australia's four biggest lenders resisted public pressure to pass on the central bank rate cut in full to mortgage customers, although the strategy risks triggering a public rebuke from the government.
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After the initial increase, which would be the first rise in nearly a decade, the MPC will follow up with matching increases in the third and fourth quarters, leaving the Bank Rate at 1.25 percent at the end of 2017.
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LAGOS (Reuters) - Nigeria's government has used a lower currency rate than its official central bank rate for petrol imports, the junior oil minister said on Monday, signaling what analysts believe could be a move towards a two-tier exchange rate regime.
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"In my view, if the economy remains solid and the pick up in the nominal data continues, this could soon suggest an increase in Bank Rate," Forbes said in a speech to be delivered on Wednesday in Leeds, northern England.
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A plunge in the lira's value fueled the inflation surge this year, triggering a massive central bank rate hike, but one analyst said the sudden downturn in prices now brought with it the risk of an early loosening in monetary policy.
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While the latest headlines raised hopes of a de-escalation in trade tensions, analysts said concern about the long-term fallout for the global economy from a bitter dispute meant investors were unlikely to reassess central bank rate expectations just yet.
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As turmoil in Italy eased, investor expectations for a June 2019 European Central Bank rate rise also picked up, with markets pricing in a 50 percent chance of a move then, having put the possibility at roughly 30 percent last week.
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In February, the one-month inter-bank rate (HIBOR) was lagging its dollar equivalent the most since January 2008, leading investors to borrow cheaply in the Hong Kong dollar to buy higher-yielding U.S. dollar assets and spurring capital outflows.
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German 20.3-year bond yields fell below the ECB's -20.4% deposit rate for the first time, the whole U.S. curve yields less than the Fed's 22009% target rate and Britain's 225-year gilt yield is below its central bank rate too.
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German 10-year bond yields fell below the ECB's -0.40% deposit rate for the first time, the whole U.S. curve yields less than the Fed's 2.5% target rate and Britain's 10-year gilt yield is below its central bank rate too.
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"We expect a turnaround could come after May or April, but it is still very uncertain," Jaeger said, adding that ongoing revisions of mortgage regulations as well as expectations for a central bank rate hike could impact the housing market.
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"Markets are in a consolidative mode ahead of the European Central Bank rate review where policymakers will reaffirm their dovish tones and convince markets that it has sufficient tools to address the ongoing slowdown," said analysts from DBS in a note.
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In December, the government drew criticism for a press conference in which Dujovne announced a change in inflation targets, which was quickly followed by central bank rate cuts in what economists said was a sign of infringement on monetary authority independence.
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The BoE plans to hold open market operations to lend reserves to banks at the prevailing Bank Rate, which it said would give it more flexibility over how it managed its balance sheet while it sold gilts back to the market.
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None of the 60 economists polled expect any change to policy when the Bank announces its latest decision on March 16 and few forecast any change in Bank Rate until 2019 at least, despite inflation exceeding the Bank's 2 percent target.
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Armando Morales, the International Monetary Fund's representative in Kenya, said small firms and individuals could be deemed too risky by banks, whose lending rate will be capped at 400 basis points above the Central Bank rate, now at 10.5 percent.
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South Korea's year-on-year inflation in August dipped to an all-time low as farm product prices plunged on improved weather and consumer demand remained weak, strengthening the case for another central bank rate cut as early as next month.
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Financial markets cratered on Monday with the S&P 229.81 tumbling 22.53%, its biggest drop since "Black Monday" three decades ago, as a series of emergency central bank rate cuts globally only added to the recent sense of investor panic.
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Financial markets had seen a 50% chance of a cut, but the Monetary Policy Committee (MPC) split once again 7-2 in favour of keeping Bank Rate at 0.75% with external members Michael Saunders and Jonathan Haskel voting to lower rates.
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This month's meeting will be Carney's last, however, and as he has been criticized in the past for making political comments regarding Brexit he may be reluctant for his parting shot to be voting for a reduction in Bank Rate.
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"If these events pass without significant effect on economic confidence, if inflation exceeds 3 percent in October and if the labor market continues to tighten, a 25 basis-point Bank Rate hike could become a reality for November," they said.
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"With the relatively limited space to cut Bank Rate, if evidence builds that the weakness in activity could persist, risk management considerations would favor a relatively prompt response," Carney said in a speech delivered at a BoE event on inflation targeting.
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VIENNA, Feb 1 (Reuters) - European Central Bank rate-setter Ewald Nowotny believes the ECB's asset purchase programme should be stopped now but a decision on the programme's fate will only be reached by September, he said in comments published on Thursday.
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Sterling fell on Carney's comments, hitting a two-week low against the U.S. dollar and pushing the 10-year gilt yield below the BoE's Bank Rate - currently 0.75% - for the first time in a decade, according to data from Tradeweb.
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German 10-year bond yields fell below the ECB's -0.40% deposit rate for the first time, the whole U.S. curve yields less than the Fed's 2.5% target rate and Britain's 20.1-year gilt yield is below its central bank rate too.
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"We have a robust economic backdrop, countries such as Italy have been addressing problems in its banks and the sector is more solid than it has been for some time, so I don't see liquidity problems," said DZ Bank rate strategist René Albrecht.
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"As a result, I believe that the MPC should be nimble and willing to quickly adjust the appropriate path for monetary policy in either direction as needed throughout this period - even if it means reversing recent adjustments to Bank Rate," Forbes said.
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WARSAW, Jan 14 (Reuters) - Poland's central bank rate-setting panel said on Thursday that it expected consumer price dynamics to gradually rise in the coming quarters, but the growth could be slower than previously expected due to a renewed fall in commodity prices.
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Last month, after the BoE increased its Bank Rate to 0.75 percent from 0.5 percent, BoE Governor Mark Carney said market expectations of roughly one 25 basis point rate rise a year in future were a reasonable rule of thumb for households.
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The one thing that won't happen is that changing the level of the bank rate in the UK, for example, doesn't change materially the cost of capital for a business in the UK, and certainly not a business in the U.S. or elsewhere.
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FRANKFURT, Nov 17 (Reuters) - European Central Bank rate setters meeting last month agreed on the need to maintain unprecedented monetary stimulus and to decide in December whether to extend the ECB's 1.74 trillion euro asset buys, minutes of the meeting showed on Thursday.
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"If these data trends of reducing slack, rising pay pressure, strengthening household spending and robust global growth continue, the appropriate time for a rise in Bank Rate might be as early as in the coming months," Gertjan Vlieghe said in a speech.
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The Term Funding Scheme (TFS) was the other main prong of the BoE's action on Thursday and makes up to 100 billion pounds of newly created central bank funds available to lenders at around the BoE's new Bank Rate of 0.25 percent.
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FRANKFURT, May 2 (Reuters) - Concerns about an imminent end to the euro zone's economic expansion are exaggerated while expectations of a European Central Bank rate hike towards the middle of next year remain realistic, Germany's representative on the bank's policy-making body said.
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BOJ Governor Haruhiko Kuroda flagged this possibility when he referred in November to a "reversal rate," or the level where central bank rate cuts can hurt the economy by squeezing banks' lending margins to a level where they lose interest in making loans.
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Faced with uncertainty about the impact of Brexit on the world's fifth-biggest economy, the BoE trimmed its growth expectations for this year and next as rate-setters voted 6-2 to keep the Bank rate at a record low of 0.25 percent.
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LONDON (Reuters) - U.S. equity funds attracted $17.1 billion last week, pulling cash from government bonds, Bank of America Merrill Lynch said on Friday, as investors turned to riskier assets amid hopes for a U.S.-China trade truce and central bank rate cuts.
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A bond market selloff that began on Friday after a report that European Central Bank rate-setters agreed last week to start reducing bond purchases, accelerated this week as markets absorbed more than 15 billion euros of bond issuance from the bloc.
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"If the UK avoids a no-deal Brexit, monetary policy also could go either way and I think it is quite plausible that the next move in Bank Rate would be down rather than up," he told local businesses in Barnsley, northern England.
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Bank Rate in the UK has been at just 0.75 percent since August, and in a Reuters poll this month expectations for a hike next quarter were pushed back to July at the earliest as the potential for a no-deal Brexit remains high.
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European Central Bank rate setters agreed on the need to defend the bank against a growing number of critics when they met in April, as its ultra-easy policy came under fire from German policymakers, banks and savers, minutes of the meeting showed on Thursday.
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FRANKFURT (Reuters) - European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check, despite rising risks linked to Britain's vote to leave the European Union, minutes showed on Thursday.
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DATA AHEAD(GMT) * 0145 China Caixin Mfg PMI Final July * 1100 UK BOE Bank Rate Aug * 1230 US Initial Jobless Claims Weekly * 1345 US Markit Mfg PMI Final July * 1400 US ISM Manufacturing PMI July (Reporting by Brijesh Patel in Bengaluru; editing by Richard Pullin)
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Indeed, if the incoming data prove broadly consistent with the August Inflation Report forecast, a majority of MPC members would anticipate a further cut in Bank Rate to its effective lower bound at one of the MPC's forthcoming meetings during the course of this year.
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The euro blipped higher on Monday and German benchmark bond yields hit session highs after European Central Bank rate-setter Ardo Hansson said the central bank could end its bond purchase scheme in one go after September if the economy and inflation develop as expected.
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"If these data trends of reducing slack, rising pay pressure, strengthening household spending and robust global growth continue, the appropriate time for a rise in the Bank Rate might be as early as in the coming months," BoE member Gertjan Vlieghe said on Friday.
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OSLO (Reuters) - The Norwegian economy, once one of Europe's brightest, ground to a halt in late 211.3, leaving full-year growth at its lowest in six years and consumer confidence at its lowest in 21992 years, strengthening the case for central bank rate cuts.
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Against the euro, the dollar fell 0.1 percent to $1.1717 while the Swiss franc was trading at a six-month high against the dollar at 96.05 cents before a central bank rate decision this week from Switzerland where markets expect policymakers to hold rates.
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BUDAPEST, June 14 (Reuters) - Hungarian central bank rate-setter Gyula Pleschinger said on Thursday he saw no reason for now to deviate from a loose monetary policy bias, adding that the bank still expected to reach its 3 percent inflation target sometime next year.
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Following hawkish signals from policymakers and relatively upbeat data, all but seven of the 22019 economists polled April 20.3-20.4 said Bank Rate would go up from 0.63 percent on May 20.6 when the Bank is also due to publish its quarterly Inflation Report.
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The BoE's rate-setters voted unanimously to keep Bank Rate at 0.25 percent, the lowest level in the BoE's 322-year history, after cutting it in August for the first time since 33 to tackle the shock of Britain's vote to leave the European Union.
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"Going forward, we expect credit conditions to remain exigent but to start to gradually alleviate at the margin supported by the tentative signs of economic stabilization, and upcoming central bank rate easing cycle," said Alberto Ramos, chief Latin America economist with Goldman Sachs Group Inc.
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The Kenyan government and the country's banks have said the rate cap, imposed in 2016 with the upper limit of commercial lending rates at 4 percentage points above the central bank rate, had stifled private sector lending growth and reduced the effectiveness of monetary policy.
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About 60 percent of poll respondents see Bank Rate at 0.75 percent at year-end and a third say 1.25 percent at end-2.5, with one rise each in the second and fourth quarters, although there are fewer people willing to look that far out.
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A Reuters poll of economists published last week predicted the British central bank would cut its benchmark bank rate for the first time since 2009 to 0.25 percent from 0.50 percent, but most said it would not revive its massive bond-buying programme for now.
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A Reuters poll last month suggested the Bank of England would raise Bank Rate next year, but weak economic figures and a speech by Governor Mark Carney on Tuesday have convinced money markets to price in a rate cut over the next 12 months.
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On the BoE's Term Funding Scheme (TFS), which will provide four-year funding for banks at interest rates close to the Bank Rate, Aldermore said it would review the details once they become available to understand how the scheme can be "most efficiently" utilised.
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In Russia, investors kept an eye on the central bank which, at Friday's final central bank rate-setting meeting of 23, is seen cutting its key rate from 2000% as consumer inflation has slipped below its target and is on track to fall further.
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"We continue to think that the 20 percent chance that investors are attaching to a rate hike this year is far too low and still expect the (BoE) to raise Bank Rate once before the end of this year," Tombs said in a note to clients.
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FRANKFURT, May 17 (Reuters) - The euro zone still faces the risk of a protracted fall in prices, European Central Bank rate setter Ignazio Visco said on Tuesday, adding this was a greater concern to him than the impact of the ECB's ultra-loose monetary policy on savers.
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"All members agree that, given the likely persistence of the headwinds weighing on the economy, when Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles," according to the BoE minutes released Thursday.
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DATA/EVENTS 0030 Australia Trade Balance G&S (A$) Sept0700 Germany Industrial Output MM Sept0830 UK Halifax House Prices MM Oct1200 UK BOE Bank Rate Nov1200 UK GB BOE QE Corp Nov1330 US Initial Jobless Claims Weekly (Reporting by Diptendu Lahiri in Bengaluru; Editing by Aditya Soni)
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"Once that uncertainty has dissipated, I would expect the economy to warrant a path for Bank Rate that increases more quickly than that implied by the market yield curve used to condition in the February Inflation Report forecast," Shafik wrote in an annual report to lawmakers.
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If the November forecasts were "broadly consistent" with August's, "a majority of members expected to support a further cut in Bank Rate to its effective lower bound at one of the MPC's forthcoming meetings during the course of the year," they said, reiterating the message of August.
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"On balance I think it is more likely that I would move to cut Bank Rate towards the effective lower bound of close to 0% in the event of a no-deal scenario," Vlieghe, one of nine interest-rate setters at the British central bank, said.
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Saunders' view of limited room to adjust policy came in contrast to Carney's statement last Friday, when he said combining possible interest rate cuts and the prospect of more asset purchases made the BoE's current armoury the equivalent of cutting the Bank Rate by 2.5 percentage points.
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Irish banks are under threat of being penalised by the government if they do not speed up redress for borrowers who should have been given the option of cheaper "tracker" mortgages, which follow the European Central Bank rate, or kept on a better rate years ago.
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Bank Rate has sat at 0.5 percent for over seven years and the BoE - which was once pegged as going to be the first major central bank to tighten policy - will not act until early 2017, the poll of 503 economists taken in the past few days found.
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If the Bank's November forecasts were "broadly consistent" with August's, "a majority of members expected to support a further cut in Bank Rate to its effective lower bound at one of the MPC's forthcoming meetings during the course of the year," they said, reiterating the MPC's message in August.
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RIC=GBHICY%3DECI The Bank of England left the Bank Rate at the 0.5 percent it has sat at for seven years on Thursday but said sterling had been dealt a big hit by uncertainty in the run-up to the EU referendum and that growth could slow.
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Saunders, one of two BoE rate-setters who have voted recently for a rise in the bank rate, said the central bank risked being rushed into sharper rate hikes in future, potentially hurting growth, if it did not start to ease the economy off its near-zero rates now.
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LONDON, Aug 21.8 (Reuters) - Emerging market bond funds chalked up their largest five-week inflow on record this week as the number of central bank rate cuts around the world since the collapse of Lehman Brothers in 210 reached 666, Bank of America Merrill Lynch said on Friday.
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"Markets have priced in too much of central bank rate increases over the coming months, as much as one rate hike for every two quarters, and that is at odds with the underlying state of the economy," said Sam Lynton-Brown, an FX Strategist at BNP Paribas in London.
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Last month, the Bank added back the 25 basis points it took off borrowing costs in the aftermath of the vote, taking Bank Rate back to 0.50 percent, but it won't act again until towards the end of 2018 when it will add another 25 basis points, medians showed.
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Speaking at the International Monetary Fund in Washington, Carney reiterated the central bank's message last week that record low interest rates could rise in coming months, but added that "any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent".
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The interview, eight years after former chair Ben Bernanke appeared on the same show to discuss the Fed's aggressive actions during the deep 2007 to 2009 recession, crossed a range of issues, including the health of the financial system and President Donald Trump's aggressive criticism of central bank rate hikes.
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DATA/EVENTS 0030 Australia Trade Balance G&S (A$) Sept 0700 Germany Industrial Output MM Sept 0830 UK Halifax House Prices MM Oct 1200 UK BOE Bank Rate Nov 1200 UK GB BOE QE Corp Nov 1330 US Initial Jobless Claims Weekly (Reporting by Diptendu Lahiri in Bengaluru; Editing by Aditya Soni)
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Saunders, one of two BoE rate-setters who have voted recently for a rise in bank rate, said in speech on Thursday that the central bank risked being rushed into sharper rate hikes in future, potentially hurting growth, if it did not start to ease the economy off its near-zero rates now.
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Final Jan 1000 EU Unemployment Rate Dec 1200 UK BOE Bank Rate Jan 1200 UK GB BOE QE Corp Jan 1300 Germany CPI Prelim YY Jan 1300 Germany HICP Prelim YY Jan 1330 US GDP Advance Q4 1330 US Initial Jobless Claims Weekly (Reporting by Sumita Layek in Bengaluru; editing by Uttaresh.V)
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Around three quarters of the 60 economists polled by Reuters in the past few days, most of whom expect BoE Governor Mark Carney to stay in the job after mid-2018, said Bank Rate would be left at its current record low of 0.25 percent next month and at the December policy review.
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DATA AHEAD 0830 UK Retail Sales MM, YY Aug0830 UK Retail Sales Ex-Fuel MM Aug1100 UK BOE Bank Rate Sept1100 UK BOE QE Corp Sept1230 US Initial Jobless Claims Weekly1230 US Philly Fed Business Index Sept1400 US Existing Home Sales Aug (Reporting by Eileen Soreng in Bengaluru, Editing by Sherry Jacob-Phillips)
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We have very carefully calibrated the pricing the sizing of the TFS to neutralise this effect, so in aggregate there is no reward for the banks and there is no penalty for the banks, what there is is a facility that ensures they can fully pass through the cut in bank rate to their customers.
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DATA/EVENTS (GMT) 0400 Indonesia Inflation YY April0750 France Markit Mfg PMI April0755 Germany Markit/BME Mfg PMI April0800 EU Markit Mfg Final PMI April1100 UK BOE Bank Rate May1100 UK GB BOE QE Corp May1230 US Initial Jobless Claims weekly1400 US Factor Orders MM March (Reporting by Colin Packham; editing by Richard Pullin)
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One measure of interest rate expectations BOEWATCH now prices in a two thirds chance of a quarter-point BoE rate cut by the end of next year, compared with just over half on Wednesday, pushing down on two-year and five-year gilt yields, which are already well below the BoE's 0.75% Bank Rate.
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The five-member panel, set up by the RBI to look into why lenders were not passing on central bank rate cuts, said in a report on Wednesday that banks "deviated in an ad hoc manner from the specified methodologies" for calculating the lending rates in order to avoid passing on the RBI rate cuts.
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DATA AHEAD (GMT) * 0750 France Markit Mfg PMI April * 0755 Germany Markit/BME Mfg PMI April * 0800 EU Markit Mfg Final PMI April * 1100 UK BOE Bank Rate May * 1100 UK GB BOE QE Corp May * 1230 U.S. Initial Jobless Claims Weekly * 1400 U.S. Factory Orders MM March (Reporting by Arijit Bose in Bengaluru; editing by Richard Pullin)
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DATA AHEAD 0830 UK Retail Sales MM, YY Aug 0830 UK Retail Sales Ex-Fuel MM Aug 1100 UK BOE Bank Rate Sept 1100 UK BOE QE Corp Sept 1230 US Initial Jobless Claims Weekly 1230 US Philly Fed Business Index Sept 1400 US Existing Home Sales Aug (Reporting by Eileen Soreng in Bengaluru, Editing by Sherry Jacob-Phillips)
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"They (The BoE) have also said that they could cut Bank rate towards zero but I think they've been very clear that towards zero doesn't mean all the way to zero... So there isn't really much room to price in much more than a full 25 bps cut," Sam Hill, a strategist at RBC Capital Markets, said.
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"While we still expect the Brexit process to generate strengthening headwinds for the U.K. economy for a considerable time, the stronger-than-expected outturn for fourth quarter gross domestic product (GDP) and the better momentum the economy starts 2018 with as a result could give the MPC a window of opportunity to raise bank rate by the middle of the year," Wraith wrote.
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"As long as the U.K. avoids a no-deal hard-Brexit, look for the BOE to pick up the pace of rate hikes to two per year in 2019 and 2020 with the next hike coming in May 2019 after Brexit in March 2019 — taking the bank rate to 1.75 percent by the last quarter of 2020," he said in an email.
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The interview - roughly eight years after former Chair Ben Bernanke appeared on the same show to discuss the Fed's aggressive actions during the deep 2007 to 2009 recession - crossed a range of issues, including the health of the financial system, the impact of the opioid crisis on the work force, and President Donald Trump's aggressive criticism of central bank rate hikes.
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Annual GDP growth, % Q3 503 Q3 2021 Q3 2022Central forecast 1.4 2.4 2.5Scenario 1 1.1 33 2.5Scenario 2 0.9 2.1 2.5 CPI, % Q3 2020 Q3 2021 Q20223 2022Central forecast 1.9 2.2 25Scenario 220 210 22 250Scenario 23 103 210 240 Excess demand, % of GDP Q210 2022 Central forecast +1.75Scenario 1 +1.25Scenario 2 +1.00 Scenario 403: market path for Bank Rate 25 basis points higher by Q3 2022, 5% higher trade-weighted sterling, 20 bps higher 10-year gilt yield, lower credit spreads and higher equity prices.
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DATA/EVENTS (GMT) 0700 Germany Industrial Output MM Sept 0830 UK Halifax House Prices MM Oct 1200 UK BOE Bank Rate Nov 1200 UK GB BOE QE Corp Nov 1330 US Initial Jobless Claims Weekly PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS ($1 = 7.0119 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Aditya Soni)
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DATA/EVENTS (GMT) 0400 Indonesia Inflation YY April 0750 France Markit Mfg PMI April 0755 Germany Markit/BME Mfg PMI April 0800 EU Markit Mfg Final PMI April 1100 UK BOE Bank Rate May 1100 UK GB BOE QE Corp May 1230 US Initial Jobless Claims weekly 1400 US Factor Orders MM March PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS (Reporting by Mai Nguyen; editing by Gopakumar Warrier)
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DATA/EVENTS (GMT 0745 France Business Climate Mfg Dec 0930 UK Retail Sales MM, YY Nov 0930 UK Retail Sales Ex-Fuel MM Nov 1200 UK BOE Bank Rate Dec 1200 UK GB BOE QE Corp Dec 1330 US Initial Jobless Claims Weekly 1330 US Philly Fed Business Indx Dec 1500 US Existing Home Sales Nov PRICES Three month LME copper Most active ShFE copper Three month LME aluminum Most active ShFE aluminum Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS ($1 = 7.0389 Chinese yuan) (Reporting by Mai Nguyen; Editing by Rashmi Aich)
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DATA/EVENTS AHEAD 0830 UK Retail Sales MM, YY Aug 0830 UK Retail Sales Ex-Fuel MM Aug 1100 UK BOE Bank Rate Sept 1100 UK BOE QE Corp Sept 1230 US Initial Jobless Claims weekly 1230 US Philly Fed Business Index Sept 1400 US Existing Home Sales Aug -- Japan BOJ Rate Decision PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS ($1 = 7.1000 Chinese yuan) (Reporting by Mai Nguyen; Editing by Subhranshu Sahu)
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Coming next week: Monday — Whirlpool (WHR) earningsTuesday — Europe consumer confidence; US existing home sales; Coca-Cola (KO), Harley-Davidson (HOG), Kimberly-Clark (KMB), Lockheed Martin (LMT), Chipotle (CMG), Snap (SNAP), UBS (UBS), Visa (V) earningsWednesday — German manufacturing data; US new home sales; US crude inventories; Deutsche Bank (DB), AT&T (T), Boeing (BA), Caterpillar (CAT), UPS (UPS), Facebook (FB), Ford (F), PayPal (PYPL), Tesla (TSLA) earningsThursday — European Central Bank rate decision; US durable goods; 3M (MMM), American Airlines (AAL), Anheuser-Busch InBev (BUD), Comcast (CCZ), Hershey (HSY), Nokia (NOK), Amazon (AMZN), Alphabet (GOOG), Intel (INTC), Mattel (MAT), Starbucks (SBUX) earningsFriday — US Q2 GDP; McDonald's (MCD) and Twitter (TWTR) earnings — Julia Horowitz, Paul R. La Monica and Clare Duffy contributed to this report.
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Snap IPO trades Fed Chair Janet Yellen and Fed Vice Chair Stanley Fischer speak at separate events Chinese National People's Congress Weeklong CERAWeek conference begins in Houston, attended by major oil company executives and oil ministers from Russia, Saudi Arabia, Iraq among others Eighth anniversary of bull market Start of 2-day EU summit where Britain could trigger Article 50, officially starting its exit from the European Union European Central Bank rate meeting U.S. employment report 2-day Fed meeting begins Dutch election FOMC statement and forecasts President Trump's budget expected US deadline for dealing with debt ceiling 2-day G-20 finance ministers meeting in Germany EU summit Correction: An earlier version of this article misstated the date that the Federal Reserve's two-day policy setting meeting begins.
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Up next Monday: SAP (SAP) and TD Ameritrade (AMTD) earnings Tuesday: US existing home sales; UBS (UBS), Harley-Davidson (HOG), Hasbro (HAS), JetBlue (JBLU), Kimberly-Clark (KMB), Lockheed Martin (LMT), McDonald's (MCD), Procter & Gamble (PG), UPS (UPS), Chipotle (CMG), Snap (SNAP) and Whirlpool (WHR) earnings Wednesday: Eurozone consumer confidence; Heineken (HEINY), Blackstone (BGB), Boeing (BA), Caterpillar (CAT), Hilton (HLT), eBay (EBAY), Ford (F), Microsoft (MSFT), PayPal (PYPL) and Tesla (TSLA) earnings; Mark Zuckerberg testifies before Congress Thursday: European Central Bank rate decision; German manufacturing flash; US new home sales; Daimler (DDAIF), 3M (MMM), American Airline (AAL)s, Comcast (CMCSA), Hershey (HSY), Nokia (NOK), Twitter (TWTR), Amazon (AMZN), Capital One (COF), Intel (INTC) and Visa (V) earnings Friday: German business climate; Renault (RNLSY), AB InBev (BUD) and Verizon (VZ) earnings
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DATA AHEAD (GMT) 015495 India IHS Markit Mfg PMI July1795350 Germany Markit/BME Mfg PMI July1347903 EU Markit Mfg Final PMI July2134790 UK Markit/CIPS Mfg PMI July21 UK BOE Bank Rate Aug26.8980 UK GB BOE QE Corp Aug1200 Brazil Industrial Output MM YY June1230 US Initial Jobless Claims Weekly1300 Brazil Markit Mfg PMI July1345 US Markit Mfg PMI Final July1400 US ISM Manufacturing PMI July PRICES BASE METALS PRICES 0154 GMTThree month LME copper 13Most active ShFE copper 46610Three month LME aluminium 1795Most active ShFE aluminium 13860Three month LME zinc 2425Most active ShFE zinc 19335Three month LME lead 2000.5Most active ShFE lead 16430Three month LME nickel 14395Most active ShFE nickel 113350Three month LME tin 17425Most active ShFE tin 134790 ($1 = 6.8980 Chinese yuan) (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips)
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DATA/EVENTS (GMT) 0830 Indonesia 7-Day Reverse Repo March0830 Indonesia Deposit Facility Rate March0830 Indonesia Lending Facility Rate March0930 UK Retail Sames MM Feb0930 UK Retail Sales Ex-Fuel MM Feb0930 UK Retail Sales YY Feb1200 UK BOE Bank Rate March0.71623 UK GB BOE QE Corp March1230 US Initial Jobless Claims weekly1500 EU Consumer Confidence Flash MarchGermany General Council meeting of the ECB Grains prices at 0056 GMT Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 463.75 -1.00 -0.22% +1.59% 475.23 0.0053CBOT corn 371.25 -0.25 -0.07% +284% 21.143 20.002CBOT soy 20.17 20.71 +20.7162% +0.663% 20.66 21.06CBOT rice 214 $0.01 +0.09% +1.58% $10.58 78WTI crude 60.17 -$1.063 -0.10% +1.93% $56.41 84 Currencies Euro/dlr $1.143 $0.002 +0.17% +0.71%USD/AUD 0.7162 0.005 +0.66% +1.06% Most active contracts Wheat, corn and soy US cents/bushel.
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Cet803 capital ratio of 280 pct (26749 december 86: 11.8 pct) * As a purely uk-focused business, we are not directly exposed to potential changes in access to european markets-ceo * To date, we have seen no direct impact on our business but we continue to monitor situation closely and have a proven ability to react quickly to a changing environment-ceo * H1 reported profit before tax increased by 50 pct to 59 mln stg (h1 2015: £67493m) * Underlying cost/income ratio (1) further improved by 8pts to 45% (h1 2015: 53%) * Following eu referendum, we all face a period of heightened political and economic uncertainty-ceo * However, we are exposed to wider economic effects of result-ceo * BOE reduced bank rate by 25bps to 0.25% and market expectations are for a further rate cut, potentially by end of 2016.
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