London, England.-El Bank of England appears ready to cut rate of interest Thursday for the first time since 2009, seeking to avoid the decision of United UK to leave the European Union will push the country into recession.
While the bank confounded the experts three weeks ago when he left his kind unchanged, said most of its members would probably support a measure in August because uncertainty after the referendum has befallen the economy.
Since then, growth appears to have slowed sharply and a poll on Wednesday, closely watched by investors, suggested that the British economy was shrinking stronger than the last time the Bank of England (BoE) lowered its rate .
Almost all economists they expect the BoE will cut rate of interest by a quarter percentage point to a record low of 0.25 percent, and many believe it will resume a multi-million bond purchases.
“There is sufficient evidence of the negative impact on the economy that justifies some relaxation,” said Philip Shaw, although it considers the magnitude of the slowdown is not clear so I doubt that the bank buy bonds in addition to cutting the rate.
the head of the BoE Andy Haldane economist said he wanted to use “a sledgehammer to crack a nut”, but another official, Kristin Forbes, said the bank Central should stay calm and not rush to make a decision until more hard data available.
While most polls consumers and businesses point to a clear slowdown, it is too early to have any specific figure officer how production has been affected by the referendum of June 23.
If the Bank of England low rate of interest lower level of its 322-year history, will add to monetary regulators in Japan and Australia in the last week have taken unprecedented stimulus measures.
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