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Home > News and Publications > Quarterly Bulletin 2016 Q2

Quarterly Bulletin 2016 Q2

12 July 2016

Complete issue (9MB)


Topical articles

The demise of Overend GurneyThe demise of Overend Gurney

By Rhiannon Sowerbutts, Marco Schneebalg and Florence Hubert

150 years ago, Overend Gurney, the largest discount house in the City of London, suspended payment. The Times immediately christened this date ‘Black Friday’ due to the financial panic that ensued.

The Bank of England, a private bank at the time, refused assistance to Overend Gurney but supported the refinancing of viable banks and brokers by depleting its own reserves. This lending by the Bank of England led to valuable debates around optimal central bank lending and limited liability. There are several lessons which remain relevant today. 
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​​The Bank of England’s Independent Evaluation Office

By Sarah Ashley and Lea Paterson

In September 2014, the Bank of England established an Independent Evaluation Office (IEO) – a core initiative of the ‘Open and Accountable’ pillar of its Strategic Plan.

The IEO reports directly to the Chairman of the Court of Directors (the Bank’s unitary Board) and operates at arm’s length from local business areas of the Bank. The IEO has delivered three in-depth projects since its inception, with two further evaluations in progress.
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How are households' inflation expectations formed?​​How are households’ inflation expectations formed?

By Jeremy Rowe

Expectations about future inflation are an important factor determining current inflation and therefore the ability of the Monetary Policy Committee (MPC) to meet its 2% inflation target.

Households’ inflation expectations are informed by recent perceptions of inflation, particularly at shorter horizons. Wider macroeconomic factors, including the inflation target, also inform households’ inflation expectations, and more so at longer horizons.
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​A review of the work of the London Foreign Exchange Joint Standing Committee in 2015

The Committee met five times during 2015. The Committee continued to focus on the main issues impacting the functioning of, and liquidity within, the FX market. This included the potential impact of regulatory reforms on FX markets and the drivers and impact of FX volatility.

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Monetary Policy Roundtable

On 26 February 2016, the Bank of England and the Centre for Economic Policy Research (CEPR) hosted their fourteenth Monetary Policy Roundtable. These events provide a forum for economists to discuss key issues relevant to monetary policy in the United Kingdom.


Recent economic and financial developments

Markets and operations

The first section of this article reviews developments in financial markets between the 2016 Q1 Quarterly Bulletin and 27 June 2016. The second section goes on to describe the Bank’s own operations within the Sterling Monetary Framework.