News & AnalysisCareer
Trading
Explore a wide range of markets with competitive pricing, deep liquidity, and advanced trading tools.
Learn More 
Platform
Trade seamlessly with TMGM's powerful platform, built for speed, precision, and a superior trading experience.
Learn More Trading Platform
Trading Tools
Academy
Learn the fundamentals of trading with beginner-friendly resources, including guides, webinars, and market insights.
Learn More News & Analysis
Get real-time market updates and expert analysis to stay ahead of trading opportunities
Learn More News & Analysis
About
Learn what sets TMGM apart — our global presence, regulatory strength, and commitment to innovation in trading.
Learn More Why Choose TMGM
Sponsorship
Bailey speech: Latest oil price decline brings positive news
Following the November meeting’s decision to increase the policy rate by 25 basis points (bps) to 4%, Bank of England (BoE) Governor Andrew Bailey outlines the policy outlook and takes questions from the press.
Bailey sets out the policy outlook
"Market curve prices further restrictiveness into next year, but this largely reflects risk premia, not expected rates, this seems fair reflection of energy risks."
"Latest fall in oil prices is positive news."
"Unless there is progress towards resolving conflict, further increase in bank rate may be warranted."
"Good news on Iran conflict would reduce risk of further inflation pressures, could lead to CPI peak somewhat below 5%."
"Had we known what would happen in last 48 hours, rate decision would still have been the same."
"If we do see a peace process, that would be a good thing and lower energy prices."
BoE policy explained
Responsibility for the United Kingdom’s monetary policy rests with the Bank of England (BoE), whose main objective is ‘price stability’: a steady inflation rate of 2%. To pursue that objective, it adjusts base lending rates. By setting the rate at which it lends to commercial banks and at which banks lend to one another, the BoE determines the overall level of interest rates across the economy. The value of the pound sterling (GBP) is also affected.
Inflation above the Bank of England’s target prompts it to increase interest rates, raising borrowing costs for households and businesses. Sterling benefits because higher rates make the UK a more attractive destination for global investors’ funds. Below-target inflation, by contrast, signals slowing economic growth. The BoE will then consider cutting interest rates to make credit cheaper, hoping to encourage businesses to borrow for investment in projects that generate growth. This is negative for sterling.
When interest rate cuts cannot deliver the required outcome, the Bank of England can turn to Quantitative Easing (QE) as a last resort in extreme circumstances. This policy substantially expands the flow of credit through a stalled financial system. To carry it out, the BoE prints money and purchases assets from banks and other financial institutions, usually government bonds or AAA-rated corporate bonds. A weaker pound sterling is the usual result of QE.
As the economy strengthens and inflation begins to rise, quantitative tightening (QT) reverses QE. Under QE, the Bank of England (BoE) buys government and corporate bonds from financial institutions to encourage lending. Under QT, however, it ceases further bond purchases and no longer reinvests the principal repaid as its existing bond holdings mature. The effect on sterling is usually positive.
POPULAR ARTICLES
1Potential security threat prompts Binance to revoke SignalPlus API keys2Silver Price Forecast: XAG/USD stays under pressure as lower highs persist despite recent rebound3Swedish Krona: Inflation setback puts Riksbank path in doubt – Nomura4Last week saw US Initial Jobless Claims fall to 189K5United States Unit Labor Costs below forecasts (0.6%) in 3Q: Actual (-0.7%)6United States Continuing Jobless Claims above expectations (1.71M) in October 23: Actual (1.718M)7United States Initial Jobless Claims 4-week average fell from previous 196.75K to 194.75K in October 308United States Initial Jobless Claims came in at 189K below forecasts (196K) in October 309Swiss Franc May Extend Gains Against US Dollar, Says UOB
Connect With Us
Contacts
Phone: +61 2 8036 8388
Fax: +61 2 8036 8388
Email: support@tmgm.com
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved