The Bank of England today became one of the only central banks to announce a stimulus package that appears to have, at least for now, exceeded market expectations and satisfy investors in a way that other central banks have failed this year. The triple whammy of a rate cut, an increase in bond buying – both government and now corporate...
World stocks fell for a third straight day today, depressed by growing nervousness surrounding central bank policy and the spike in world bond yields, although European bank shares rebounded after two major earnings reports.
Britain's economy is shrinking at its fastest rate since the financial crisis after last month's Brexit vote, making a Bank of England rate cut tomorrow a "foregone conclusion", a closely watched survey of businesses showed.
I am pleasantly surprised to find the Bank of England Monetary Policy Committee managed to hold rates steady at the 0.50% all-time low, and not expand its purchased assets beyond the previous £350 billion. It is a triumph of sane assessment of real conditions over highly anticipatory policy making.
The safe-haven yen rose sharply against the euro and dollar while sterling fell to its lowest in more than 30 years today, as currency markets fretted about more signs of economic stress stemming from Britain's decision to leave the European Union.
European equity markets are expected to open a little higher on Tuesday as traders look toward the CPI data from the UK and the United States for signs that inflationary pressures are actually returning.