Thursday, August 4, 2016
Bank of England Cuts Rates for the First Time Since 2009
The Bank of England cut its key lending rate by a quarter of a percentage point to 0.25%. This was not unexpected in the wake of Brexit.
However, the central bank also announced a number of other measures including reviving its government bond-buying program, by 60 billion pounds, and adding the purchase of 10 billion pounds in U.K. corporate bonds.
So now we have a major central banking getting involved directly in the private sector securities market, instead of going backdoor. Interesting.
Best takeaway: Pretty much the entire world is in a major money printing mode, with an extra bit of seasoning for the elitist corporate sector. This will not end well.
at 12:25:00 PM