Bank of England

The Bank of England (BoE)has elected to hold the base rate at 0.5% and maintain the size of its quantitative easing (QE) programme at £375bn.

WEALTH MANAGERS

Positive data pointing to the increasing pace of the UK economy is putting the Bank of England (BoE) under greater pressure to rein in market expectations of an interest rate rise.

Sterling dropped and then recovered sharply minutes after new Bank of England Governor Mark Carney told the world he has no plans to raise rates any time soon, but was upbeat on UK growth.

Mark Carney has moved to defend the Bank of England's 'forward guidance' policies and said further stimulus may be necessary keep the UK economic recovery on course.

The rise in bond yields during May and June has left few parts of the bond market unscathed, and UK bonds were very much part of this move.

Charlie Bean, the deputy governor of the Bank of England (BoE), said the Bank has sent a "clear signal" it will not increase interest rates anytime soon as he expressed surprise at investors' reaction to its position.

BOND SELL-OFF

FIXED INCOME

ECONOMICS