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Bank of England hints at possible rate cut

2020-01-13 09:54:14

The topic of discussion that we are going to have this specific article is from The Bank of England and a rate cut.

There is the proposal of a rate cut, we have that there is another official from The Bank of England who would agree that this is carried out, the opinion expressed by Gertjan Vlieghe is that he is willing to put his vote in this plan, but It will depend on the state in which the economy performs after the December elections, this told the Financial Times, more important details about it will come next.

What is a rate cut by the Bank of England?

On the part of the banks and lenders the rates are used to make the fixing of the costs of the certain loans, where everything is affected, starting from the mortgages to the loans of the companies, achieving an effect on the finances of the people and companies, there is a third person in charge of the policies to be established, being this Vlieghe, it indicates that it is possible that at the end of the month he will be willing to make this decision of the cut, when the monetary policy committee meets.

The exit governor of the Bank of England Mark Carney expressed in a speech that if the economic weakness is persistent, the necessary and rapid measures must be taken, also defining that the space for the cut is limited, but with sufficient evidence of the weakness that may exist in the economy this option will be viable, the risk would have to be taken immediately.

We have for another member of the MPC such as Silvana Tenreyro, said in this regard that if an uncertain future of trade agreements or growth on a world scale is maintained, where this weighs in demand, it will leave for the realization of short-term cuts of bank fees.

What is concluded about these rate cuts by the Bank of England?

As for a final decision, the 3 members of the committee took care to decide something complex, so they took another meeting on January 30 to make decisions, in November they met and 2 of the members voted for the cuts, now open that See what happens.

Once I vote Jonatan Haskell is express that the economy has risks that persist, as for the other member who voted in favor Michael Saunders has not issued comments on the matter, on January 15 he plans to make his pronunciation on this issue, The rate is currently 0.75 percent and 0.25 percent are the cuts and increases for recent years.

In this way, this article has come to an end, highlighting the treatment of The Bank of England and a rate cut, waiting for this situation to end, meanwhile we hope that this content has been supportive for readers of the same.

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