Morning folks,
Some updates this Friday:
Future (LON:FUTR)CMC Markets (LON:CMCX)Foxtons (LON:FOXT)Tracsis (LON:TRCS)Tclarke (LON:CTO)Timings: finished at 14:40.
Central Banks to the rescue – Zero Interest Rate Policies (but no QE)
Perhaps I shouldn’t complain, since this news may have helped to erase some of the losses on my long FTSE trade.
Let’s just spend a few moments reflecting on the latest act of monetary desperation.
The new Governor of the Bank of England, Andrew Bailey, has presided over the second emergency rate cute in a week.
Already this month, former Governor Mark Carney erased the two 25 basis point increases he made in 2017-2018 by announcing a 50 point cut in Base Rate.
That decision brought us back to the all-time low of 0.25%.
It’s not enough, and the new Governor wants an even more extreme stance to deal with the Coronavirus-related financial panic.
From the Bank’s statement:
Over recent days, and in common with a number of other advanced economy bond markets, conditions in the UK gilt market have deteriorated as investors…
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