from The Daily Bell:
Britain’s central bank is on the cusp of pulling an unprecedented move to stop Brexit destroying the economy … The Bank of England is on the cusp of cutting interest rates to a new historic low again on Thursday in a bid to mitigate an impending economic slowdown caused by a Brexit. -Business Insider
This Business Insider article points out how the Bank of England is getting ready to save the British economy from the upcoming Brexit recession.
Many in the investment industry are positive about the Bank of England’s move to reduce rates from 0.5% to 0.25%. According to a survey in the Financial Times, markets “have already priced in a 75% chance of interest rates being cut from 0.5% to 0.25% this week.“
One analyst, for example, Jonathan Loynes of Capital Economics told the FT: “We think the [Monetary Policy] Committee will recognise the dangers of disappointing market expectations and cut the Bank rate by 0.25%.”
Britain’s interest rates have been at a historic low of 0.5% since March 2009 and before Britain voted to leave the European Union on June 23, the BOE was priming itself to eventually start raising rates again.
Lower rates, as the article points out, are great for people with debts, not for people with savings. Additionally, Carney already stated that the total capital the BoE is ready to inject is an astonishing $324 billion into the financial system.
And it’s not just in Britain. “The Bank of England is also able to provide substantial foreign currency liquidity if needed,” he said.
Please follow SGT Report on Twitter & help share the message.