In a determined and direct effort to boost the UK’s economy, after the fall-out from the recent Brexit decision, the Bank of England (BoE), for the first time since 2009, unanimously decided to cut interest rates. The rate now sits at 0.25%, an all-time low.
The Governor of the BoE, Mark Carney, also intimated that, should the economy worsen, they could lower the interest rate further in the future.
Another adrenalin shot to the economy was announced by the Bank of £170 billion worth of monetary easing measures. These include a new Term Funding Scheme, wherein £100bn of funds will be made available to the commercial banks at rates close to the new 0.25% rate, provided these funds are utilised as loans to households and businesses and that they benefit from this rate reduction accordingly.
The BoE will also purchase £60bn of UK Government Gilts and £10bn of corporate bonds, thus pumping more liquidity into the market.
Mark Carney was quoted as saying at the time: “The MPC is determined that the stimulus the economy needs does not get diluted as it passes through the financial system.”
He went on to add: “We took these steps because the economic outlook has changed markedly, with the largest revision to our GDP forecast since the MPC was formed almost two decades ago.
“By acting early and comprehensively, the MPC can reduce uncertainty, bolster confidence, blunt the slowdown, and support the necessary adjustments in the UK economy.”
Issued by: Enable Independent Financial Life Planners
•
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone:
01279 755950 - Fax: 01279 657339
Enable Independent Financial Life
Planners is a trading style of Enable Independent Limited is authorised
and regulated by the Financial Conduct Authority.
It is important always
to seek independent financial advice before making any decision
regarding your finances. If you would like any assistance, please
contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS
GIVING INDIVIDUAL FINANCIAL ADVICE
No comments:
Post a Comment