Bank Underground

Bank Underground

Bank of England

Bank Underground is a blog written by staff at the Bank of England. On Bank Underground, authors write in an individual capacity and there is no “house view”.


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Bank of England · 7 August 2024 English

David Glanville and Arif Merali Short term interest rate (STIR) futures are the bedrock of interest rate markets, used to price expectations of central bank policy rates and other UK …


Bank of England · 2 August 2024 English

Jenny Chan, Sebastian Diz and Derrick Kanngiesser In recent years, increases in global energy prices have posed significant challenges for net energy importers such as the UK or the euro …


Bank of England · 26 July 2024 English

Gabor Pinter, Emil Siriwardane and Danny Walker In September 2022 the interest rate on UK gilts rose by over 100 basis points in four days. These unprecedent market movements are …


Bank of England · 17 July 2024 English

Joel Mundy and Matt Roberts-Sklar When markets are volatile, liquidity tends to worsen. This makes it harder to intermediate buyers and sellers. We saw this during the 2022 liability-driven investment …


Bank of England · 12 July 2024 English

Derrick Kanngiesser and Tim Willems This post describes a systematic way for central banks to employ past forecasts (and associated errors) with the aim of learning more about the structure …


Bank of England · 11 July 2024 English

Tomas Key Nominal wage growth has increased markedly in the UK in recent years, reaching levels that haven’t been seen for more than 20 years. Although growth has moderated a …


Bank of England · 23 May 2024 English

Marco Garofalo, Giovanni Rosso and Roger Vicquery Most international trade is denominated in dominant currencies such as the US dollar. What explains the adoption of dominant currency pricing and what …


Bank of England · 22 May 2024 English

Nuri Khayal and Jonathan Loke Many households in the UK have seen their mortgage payments go up since mortgage rates started to increase in 2022. In the current environment of …


Bank of England · 16 May 2024 English

Adam Brinley Codd, Daniel Krause, Pierre Ortlieb and Alex Briers We both drive cars, but the US drives on the right while the UK drives on the left. We both …


Bank of England · 15 May 2024 English

Adam Muhtar and Dragos Gorduza Imagine a world where machines can assist humans in navigating across complex financial rules. What was once far-fetched is rapidly becoming reality, particularly with the …