Blog With Tag lower for longer
The Bank of England has raised interest rates above 0.5% for the first time since March 2009, although this is still the first-time rates have been set at 0.75%, base rates were cut from 1% to 0.5% as part of the ongoing emergency response to the financial crisis. The 0.25% increase follows the removal in November of the emergency cut to 0.25% delivered in the aftermath of the Brexit vote.
PegasusCapital - Mon 6th Aug
In the end the answer is still NO. That’s not in relation to Scotland voting to remain as a part of the UK but the ECB’s decision not to opt for full-blown QE. Instead, the ECB cut rates to a record low of 0.05%, launched the first round of its new €400bn of long term refinancing operation (LTRO) to boost bank lending and is pushing for “junk” rated asset backed securities (ABS) to be accepted as eligible collateral. The actual take up of the new LTRO facility was only €82.6bn, and with Eurozone growth in Q2 grinding to a halt at 0%, business confidence, particularly in Germany, falling on fears of the impact of Russian sanctions and consumer price inflation dropping to a 5 year low of 0.3%, sooner rather than later there could be a Yes vote for QE!
PegasusCapital - Wed 1st Oct