Bank of england

If you’re a bloke in a suit who’d like to apply for the governorship of the Bank of England (deadline 5 June), I suggest you browse the website of Sapphire Partners, the headhunters appointed by Philip Hammond to conduct the search. Run by ex-JPMorgan banker Kate Grussing with an all-female team plus Cherie Booth and Lady (Barbara) Judge on its board, the firm declares: ‘We are trailblazers [as] advocated for women in business.’ You’ll probably already have read the job spec on the Cabinet Office website, which refers to candidates as ‘she/he’. None of which means a man can’t win; the Chancellor himself, in a recent select committee appearance, made

The Bank of England today downgraded its forecast for UK GDP growth in 2019 from 1.7 per cent (a forecast it made in November) to 1.2 per cent. That is a chunky fall, but really, does anyone really care? As I have pointed out here many times before, the Bank’s record for forecasting is pretty lousy. The past year has been no exception. What has caught my eye is just how over-optimistic it was about Euro area growth a year ago. In its inflation forecast in February 2018 the Bank foresaw GDP growth in the Eurozone over 2018 running at 0.75 per cent per quarter. In the event, growth slowed dramatically

When interest rates were lowered to an ‘emergency’ level of 0.5 per cent in 2009, the market consensus was that rates would probably rise again by the following February. I am sure that absolutely no-one would have predicted we would have to wait until 2nd August 2018. Not even Mark Carney, then still governor of the Bank of Canada. How many times has he given us ‘guidance’ on when interest rates would rise – only for it to be no guide at all? Exactly five years ago, for example, he said that rates would rise once the unemployment rate, then 7.8 per cent, fell below 7 per cent. It is

‘Safe as the Bank of England.’ So goes the old phrase. And yes, with walls 8ft thick, the Old Lady is pretty impregnable. Even the keys to her vaults are more than a foot long (the locks also now incorporate voice-activated software). Until 1973 the building was guarded at night by soldiers from the Brigade of Guards, who received a pint of beer with their dinner there. With all this security, how can you hope to get in? One answer came in 1836, when the directors received an anonymous letter inviting them to meet the letter writer in the bullion room late one night. At the agreed hour they heard

Should he stay or should he go — or will he already have gone by the time you read this? These are frequently asked questions about chief executives whose businesses hit troubled waters. It’s true that the higher you rise, the higher the risk if you don’t deliver, but it’s not always true that bosses should walk the plank whenever something major goes wrong: sometimes it makes more sense to stick around, take the flak and solve the problem. However, in the cases of Gavin Patterson of BT (ousted a week ago) and Paul Pester of TSB (still in post as we go to press), it would be fair to

Monarch Airlines was the ghost of an earlier age of holiday travel. When I used to see its planes lined up at Leeds-Bradford airport alongside those of Ryanair and its brash northern rival Jet2, I sometimes wondered why Monarch was still there. Now it has been brought down by a combination of the weak pound, too much competition on Iberian routes and too little demand for terrorist-threatened ones to Turkey, Tunisia and Egypt. Even the orderly repatriation of 110,000 Monarch passengers has had an old-fashioned feel to it (perhaps even a touch of Dunkirk, for those who have seen that excellent film), enhanced by the reassuring tones of Dame Deirdre

The Prime Minister spoke today at the Bank of England to celebrate its 20 years of independence. But she has failed to recognise the irony of trumpeting the virtues of capitalism in the seat of monetary policymaking which has, for the past ten years, undermined many of the principles on which capitalism is based. In theory, the central bank operates independently of Government, but in practice, its unconventional monetary policies have acted as a democratically unaccountable arm of the Treasury. It is understandable that, in the face of the 2008 financial crisis, policymakers were looking for new ideas to save the banking system. They used monetary policy as the weapon

For anyone considering a career in economic forecasting, the Bank of England’s inflation report for August 2007 ought to be required reading. A graph illustrating its Monetary Policy Committee’s ‘best collective judgment’ of annual economic growth two years ahead is fixed around a central prediction of 2.5 per cent, with extreme boundaries of 0.8 per cent and 4.2 per cent. But after two years, economic growth was running at –5.6 per cent, and the economy had just completed its fifth consecutive quarter of negative growth. The finest minds of Threadneedle Street could not see two years ahead. In this case, the Bank of England could not even see a few