Latest news with #centralbank
The Independent
7 hours ago
- Business
- The Independent
Bank of England boss not ‘convinced' of need for digital pound
The governor of the Bank of England has said he is not 'convinced' by new forms of money such as a digital pound, as he also warned over the use of cryptocurrencies. Andrew Bailey, speaking at a conference in Kyiv, Ukraine, said central banks have to be alert to the growing 'non-money system'. Mr Bailey said he remains 'to be convinced that we need to create new forms of money – such as central bank retail digital currency – to achieve' benefits such as smarter payments and fighting fraud. The Bank of England and the Government are exploring the launch of a digital pound which could be used by households and businesses in the UK alongside cash and bank deposits. Mr Bailey's remarks revealed doubts over the creation of a digital pound aimed at everyday consumers, which is being designed but with no certainty it will be officially launched. He also stressed that cryptocurrencies such as Bitcoin were a 'risky asset class and should be seen as such'. The UK's financial watchdog recently said it planned to lift a ban on some crypto-linked investments for customers, despite warning that people could 'lose all their money' from buying it. Meanwhile, Mr Bailey said it was hard to say whether banks had faced 'excessive' post-financial crisis regulation. He said a challenging question was 'whether we have over-protected the banking system via excessive regulation, and in so doing pushed more risk into non-banks which would be more safely housed in banks'. 'Put another way, have we increased overall financial stability risk by raising the bar too high in banks? It's a fair enough question, but intrinsically hard to answer,' he said. He insisted that 'we have rightly raised regulatory standards for banks in the light of a financial crisis, the effects of which continue to be felt almost 15 years on'.
Yahoo
7 hours ago
- Business
- Yahoo
Bank of England boss not ‘convinced' of need for digital pound
The governor of the Bank of England has said he is not 'convinced' by new forms of money such as a digital pound, as he also warned over the use of cryptocurrencies. Andrew Bailey, speaking at a conference in Kyiv, Ukraine, said central banks have to be alert to the growing 'non-money system'. Mr Bailey said he remains 'to be convinced that we need to create new forms of money – such as central bank retail digital currency – to achieve' benefits such as smarter payments and fighting fraud. The Bank of England and the Government are exploring the launch of a digital pound which could be used by households and businesses in the UK alongside cash and bank deposits. Mr Bailey's remarks revealed doubts over the creation of a digital pound aimed at everyday consumers, which is being designed but with no certainty it will be officially launched. He also stressed that cryptocurrencies such as Bitcoin were a 'risky asset class and should be seen as such'. The UK's financial watchdog recently said it planned to lift a ban on some crypto-linked investments for customers, despite warning that people could 'lose all their money' from buying it. Meanwhile, Mr Bailey said it was hard to say whether banks had faced 'excessive' post-financial crisis regulation. He said a challenging question was 'whether we have over-protected the banking system via excessive regulation, and in so doing pushed more risk into non-banks which would be more safely housed in banks'. 'Put another way, have we increased overall financial stability risk by raising the bar too high in banks? It's a fair enough question, but intrinsically hard to answer,' he said. He insisted that 'we have rightly raised regulatory standards for banks in the light of a financial crisis, the effects of which continue to be felt almost 15 years on'.
Reuters
9 hours ago
- Business
- Reuters
Bank of England chief says Ukraine's goal for price stability is credible and critical
LONDON, June 20 (Reuters) - Bank of England Governor Andrew Bailey said on Friday that the Ukrainian central bank's commitment to focus fully on price stability once security threats are lower was both credible and critical as he addressed a research conference in Kyiv. "You have been very clear in public that after the security risks abate and appropriate macroeconomic conditions are established in place, you will return to conventional inflation targeting," he said in his first visit to Ukraine's capital. "It is a very clear commitment to get back to the established regime. And it is being done in a way that is not only critical but it also - to my reading - is credible," he added in his spoken remarks at the conference. Earlier this month the Ukrainian central bank held its benchmark interest rate at 15.5%, ahead of data showing that the country's inflation rate rose to an annual rate of 15.9% on the back of higher food prices. Ukraine targets an inflation rate of 5% but also uses exchange rate policy instruments and currency restrictions that are not part of the routine toolkit of most Western central banks.
News.com.au
13 hours ago
- Business
- News.com.au
Russian economy on verge of recession, minister warns
Russia's economy minister warned that the country was 'on the verge' of recession, issuing the downbeat message on the second day of a forum designed to bolster economic confidence. The Russian economy has been marked by volatility since it launched its full-scale military offensive on Ukraine in 2022, with growth now slowing after a period of what officials called 'overheating'. Moscow reported strong economic expansion in 2023 and 2024, largely due to massive state defence spending on the conflict. But economists have cautioned that growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. 'Overall, I think we are on the verge of a recession,' Economy Minister Maxim Reshetnikov told journalists at a panel on the second day of the Saint Petersburg Economic Forum. He said this view was based on 'current business sentiment and indicators' that were pointing to a slowdown. 'Everything else depends on our decisions,' Reshetnikov said, calling for the central bank to show a 'little love for the economy'. Russia's central bank jacked interest rates to an eye-watering high of 21 per cent last October to combat inflation and kept them at that level until earlier this month, when it eased them to 20 per cent. Economists had warned for months that the high interest rate and a downturn in manufacturing were weighing on the economy. Russia's economic growth slowed to 1.4 per cent year-on-year in the first quarter of 2025, the lowest quarterly figure in two years. Prices have also been rising across the Russian economy, driven up by the massive government spending on the Ukraine assault and widespread labour shortages. Annual inflation ebbed below 10 per cent in May but has been more than double the central bank's four per cent target for over a year.
Yahoo
a day ago
- Business
- Yahoo
Mitsubishi UFG Notes Market Implications From Bank of England's Policy Decision
The Bank of England left rates unchanged on Thursday, as expected, sai MUFG. The six-to-three vo Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
