David Blanchflower announced yesterday that he intends to wind up his review of the Bank of England, which was commissioned by the Shadow Chancellor John McDonnell last year. Blanchflower is a former member of the Bank of England's Monetary Policy Committee, and had sat on Labour's economic advisory council.
Three exciting breakthroughs have happened over the last two weeks! They involve three of the world’s most powerful central banks: the Bank of England, the US Federal Reserve and the European Central Bank.
The UK voted to leave the European Union by 52% to 48%. The referendum is being treated as binding by politicians, so once article 50 of the Lisbon treaty is enacted, the UK will have two years to negotiate its withdrawal from the European Union.
In a significant breakthrough, the Bank of England (BoE) has just announced it will be adopting a policy change that Positive Money has been arguing for over the last 2 years. The BoE will finally allow non-bank ‘payment service providers’ (PSPs) to hold accounts at the BoE, so that they can compete with existing banks to provide current (checking) accounts. This will break the stranglehold that large UK banks have over the provision of payment accounts - and represents a step towards further changes that would limit the ability of banks to create money.
BIS Warns of a Global Debt Crisis and a Lack of Policy Response Options: Time to Update the BoE’s Policy Toolkit?
The Bank for International Settlement (BIS) has just warned that the global economy faces a “gathering storm” brought on by too much borrowing. With high levels of private debt relative to income, increasing financial volatility and poor prospects for growth there are growing concerns about the lack of policy response options available to central banks.