Blog With Tag vix
It’s been a long time coming but at last interest rates in the UK have moved, but are they going in the right direction? The Bank of England became the 55th central bank to cut rates this year lowering the Base rate to 0.25% and increasing the QE programme by £60bn, which sent bond yields tumbling to record lows.
PegasusCapital - Fri 2nd Sep
Just when the markets thought it was a slam dunk for a US rates rise this month, the fallout from the events in China over the last month have resulted in a time out until the consequences are absorbed. The path to normalisation as it is known in financial circles (interest rates at historically normal levels) has been re-routed as all eyes focus on what is happening to the Chinese economy. The cut in Chinese interest rates by 0.5%, the devaluation of the currency and the falling stock market are symptomatic of a slowdown and the need to stimulate demand however, it is the underlying deflation that is likely to be exported to the rest of the world.
PegasusCapital - Tue 1st Sep