- Bonuses and Promotions
Bank of England had a meeting on the last Wednesday. During the meeting it was discussed a rhetoric concerning toughening of monetary policy in 2016. On Governor’s opinion, economic climate of Great Britain is very favourable, economy shows steady growth that levels consequences of world economies slowdown.
Marc Carney in his speech agreed that weakening of China’s economy had increased risks towards economic health of world economy in general. Besides, economy of the country is resistant to risks and matured for a gradual increase of interest rates, which has been holding near zero level during 10 years. On Carney’s opinion, it is very pertinently to begin gradual reduction of stimulating volumes, if economy would demonstrate in the nearest future steady growth, and inflation would strengthen.
Such possible step from Great Britain together with the U.S. will only strengthen misbalance between monetary policies of bigger world Central banks. While America and Great Britain steadily aim toughening, ECB and BoJ in contrary – steadily soften their monetary policy, supporting as much as possible economic growth. At that time China fights against uncertainty of market that occurred because of abrupt changes with yuan, which provokes increase of slowdown risk of one of the leading economies in the world.
Bank of England calmed investors, having announced, that situation with China had limited influence on British economy, although results even of such an influence were not predictable.
Negative influence on annual inflation caused fall on oil prices, so index of August reached nearly zero level. However, representatives from the bank do not see any big problem. Their forecasts are very optimistic: growth should be expected till the end of the year. It is also supported by growth of wages and fall of unemployment, which became 5.5% for August.