In addition, the first issue of British debt from referendum ended with the lowest interest rates in history by anxiety of investors looking to put their money in a safe place even unprofitable.
the threats to financial stability in the UK caused by Brexit “began to appear,” said the Bank of England (BoE), announcing an easing of the rules of funding of banks to encourage lending.
the Financial Policy Committee (FPC) of the institution decided to reduce the funds that banks must safeguard to face turbulence in order to allocate the money released credits to lubricate the economy.
measures should serve some 150,000 million pounds (178,900 million euros, 197,240 dollars) in addition to lending to households and intended companies.
to achieve this, the BoE reduced from 0.5% to 0% the financial cushion that requires banks for contingencies.
” the dominoes begin to fall “
the on Tuesday is the third intervention by the Bank of England after the Brexit. Its governor, the Canadian Mark Carney, has emerged as the protector of the economy at a time of very little role in the government of outgoing David Cameron.
The institution considered that, despite the sharp depreciation of the pound -this Tuesday returned to its level 31 years ago and bank shares, which have fallen about 20%, the financial sector is showing solid time.
not so much real estate. The fund Aviva Investors announced the suspension of the activities of one of its real estate funds by massive demands withdrawal of capital.
According to analysts, Aviva and Standard Life will not be the only ones take the same measures.
“the dominoes are beginning to fall,” said Laith Khalaf, an analyst at Hargreaves Lansdown investment company. “It’s a matter of time before other funds follow them,” he added.
The decision to Revive is added to the taken on Monday by the fund Standard Life.
“the extraordinary market circumstances that impact on the sector as a whole amounted to a lack of immediate liquidity in the fund Aviva investors Property Trust. Consequently, we act to protect the interests of all our investors suspending fund transactions with immediate effect, “said a spokesman for Aviva.
Aviva Investors, the real estate fund is valued at 1,800 million pounds (2,100 euros, 2,400 dollars), said that there were a number of demands “higher than usual” sales in recent months, combined with “difficult conditions in the market and investor sentiment.”
the shelter-value
British bonds
the United Kingdom issued public debt for the first time after the victory of Brexit and made it to the lowest interest rates in history for five-year bond , 0.382%, announced Tuesday the relevant agency.
the issue was of securities by 2,500 million pounds and interest was significantly lower than the 0.787% which was the previous record, in 2012 .
the interest on the debt are determined by auction. Its low level is explained by the fear of investors to shake the market, which leads them to seek refuge in safe securities even if they are unprofitable.
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