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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jun/16/markets-fall-bank-of-england-interest-rates-business-live
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| Version 1 | Version 2 |
|---|---|
| Markets fall ahead of Bank of England interest rate decision – business live | Markets fall ahead of Bank of England interest rate decision – business live |
| (35 minutes later) | |
| 9.21am BST | |
| 09:21 | |
| Pound down (a bit) | |
| The pound is weakening this morning, but it’s not a full-blown rout. | |
| Sterling is down around half a cent against the US dollar at $1.415, and a similar amount against the euro at €1.256. | |
| That’s a fairly muted reaction to this new IPSOS MORI poll putting Leave ahead. | |
| It’s being published in the Evening Standard today, which says: | |
| It is the first time since David Cameron pledged the referendum in January 2013 that Vote Leave have come out ahead in the respected monthly Ipsos MORI telephone survey, which is exclusive to the Evening Standard. | |
| Immigration has overtaken the economy as the most important issue to how the public will vote, which is a significant boost to Boris Johnson and the Leave campaign. | |
| LEAVE SENSATION: Our shock @IpsosMORI phone poll finds Remain six ponts behind https://t.co/8dgF0CQ0jN | |
| Another 'why isn't sterling down more' moment. | |
| 9.08am BST | |
| 09:08 | |
| Just in.... a new opinion poll, putting giving the Leave campaign in the lead by 53% to 47%. | |
| That’s a significant turnaround compared with last month: | |
| Significant collapse in REMAIN vote with LEAVE now on 53%, finds @IpsosMORI pic.twitter.com/gJaRF4Cxot | |
| 9.06am BST | |
| 09:06 | |
| All this criticism from the Leave campaign probably won’t prevent the Bank of England from citing Brexit fears in the official minutes of this week’s MPC meeting. | |
| It would be odd, frankly, if they ignored it, given the recent volatility. | |
| Conner Campbell of SpreadEx reckons it could spark a deeper selloff. | |
| The FTSE could well see its losses intensify as the day goes on with the Bank of England set to stoke those Brexit-fearing fires later this morning with a firmer warning against leaving the EU (the central bank is also expected to unsurprisingly keep interest rates on hold). | |
| Mark Carney faced a lot of criticism last time he expressed an opinion on the referendum, so expect an apoplectic reaction from Vote Leave (and perhaps another fall from the pound) as Thursday continues. | |
| 8.40am BST | 8.40am BST |
| 08:40 | 08:40 |
| Crumbs, the Bank of England is really under fire from the Brexit camp. | Crumbs, the Bank of England is really under fire from the Brexit camp. |
| Bernard Jenkin MP, a director of the Vote Leave campaign, has written to governor Mark Carney warning him not to breach the pre-referendum “purdah” rules by talking about the referendum. | Bernard Jenkin MP, a director of the Vote Leave campaign, has written to governor Mark Carney warning him not to breach the pre-referendum “purdah” rules by talking about the referendum. |
| Clearly Carney’s warning that Brexit was the biggest domestic risk to the UK economy, and could trigger a recession, has riled Leave campaigners. | Clearly Carney’s warning that Brexit was the biggest domestic risk to the UK economy, and could trigger a recession, has riled Leave campaigners. |
| But Carney has hit back, telling Jenkin that the Bank has simply been following its statutory duty to the UK people. | But Carney has hit back, telling Jenkin that the Bank has simply been following its statutory duty to the UK people. |
| “All of the public comments that I, or other Bank officials, have made regarding issues related to the referendum have been limited to factors that affect the Bank’s statutory responsibilities and have been entirely consistent with our remits.” | “All of the public comments that I, or other Bank officials, have made regarding issues related to the referendum have been limited to factors that affect the Bank’s statutory responsibilities and have been entirely consistent with our remits.” |
| And he finished with a zinger: | And he finished with a zinger: |
| *Serious* shade from Carney. https://t.co/L9iElg8xHl #EUref pic.twitter.com/WM770kCtAB | *Serious* shade from Carney. https://t.co/L9iElg8xHl #EUref pic.twitter.com/WM770kCtAB |
| More here. | More here. |
| Great BBC scoop, confirmed by Bank of England https://t.co/zVct2tWcJO | Great BBC scoop, confirmed by Bank of England https://t.co/zVct2tWcJO |
| Updated | Updated |
| at 8.50am BST | at 8.50am BST |
| 8.34am BST | 8.34am BST |
| 08:34 | 08:34 |
| Bank of England criticised | Bank of England criticised |
| Prime minister David Cameron has leapt to the Bank of England’s defence, after a volley of criticism from senior grandees. | Prime minister David Cameron has leapt to the Bank of England’s defence, after a volley of criticism from senior grandees. |
| Former chancellors Lord Lamont and Lord Lawson and ex-Tory leaders Iain Duncan Smith and Lord Howard accused the BoE, and the Treasury, of peddling “phoney forecasts” about the dangers of Brexit. | Former chancellors Lord Lamont and Lord Lawson and ex-Tory leaders Iain Duncan Smith and Lord Howard accused the BoE, and the Treasury, of peddling “phoney forecasts” about the dangers of Brexit. |
| The quartet declared: | The quartet declared: |
| “There has been startling dishonesty in the economic debate, with a woeful failure on the part of the Bank of England, the Treasury and other official sources to present a fair and balanced analysis. | “There has been startling dishonesty in the economic debate, with a woeful failure on the part of the Bank of England, the Treasury and other official sources to present a fair and balanced analysis. |
| “They have been peddling phoney forecasts and scare stories to back up the attempts of David Cameron and George Osborne to frighten the electorate into voting Remain.” | “They have been peddling phoney forecasts and scare stories to back up the attempts of David Cameron and George Osborne to frighten the electorate into voting Remain.” |
| Cameron (whose Remain campaign has relied on dire economic warnings), has hit back: | Cameron (whose Remain campaign has relied on dire economic warnings), has hit back: |
| 1/2. It's deeply concerning that the Leave campaign is criticising the independent Bank of England. | 1/2. It's deeply concerning that the Leave campaign is criticising the independent Bank of England. |
| 2/2. We should listen to experts when they warn us of the dangers to our economy of leaving the European Union. | 2/2. We should listen to experts when they warn us of the dangers to our economy of leaving the European Union. |
| 8.15am BST | 8.15am BST |
| 08:15 | 08:15 |
| Mike van Dulken of Accendo Markets says: | Mike van Dulken of Accendo Markets says: |
| Brexit fears continue to intensify a week out from the referendum, with the Federal Reserve again citing it as a headwind last night. | Brexit fears continue to intensify a week out from the referendum, with the Federal Reserve again citing it as a headwind last night. |
| The markets struggling to shrug off risk aversion sending bond prices higher and yields ever lower or more negative. | The markets struggling to shrug off risk aversion sending bond prices higher and yields ever lower or more negative. |
| And he fears the FTSE 100 could continue to slide, perhaps losing another 400 points to 5,500: | And he fears the FTSE 100 could continue to slide, perhaps losing another 400 points to 5,500: |
| #FTSE100 failure to conquer 6000 yday means we could revisit Feb lows 5500 via a 400pt bearish flag pattern pic.twitter.com/HhuYhxyEh4 | #FTSE100 failure to conquer 6000 yday means we could revisit Feb lows 5500 via a 400pt bearish flag pattern pic.twitter.com/HhuYhxyEh4 |
| 8.12am BST | 8.12am BST |
| 08:12 | 08:12 |
| FTSE 100 hits near four-month low | FTSE 100 hits near four-month low |
| European stock markets have opened in the red, hit by the familiar cocktail of economic worries and Brexit angst. | European stock markets have opened in the red, hit by the familiar cocktail of economic worries and Brexit angst. |
| In London, the FTSE 100 has dropped by 50 points, or 0.85%, to 5916. That erases yesterday’s recovery, and is the lowest point since 24 February. | In London, the FTSE 100 has dropped by 50 points, or 0.85%, to 5916. That erases yesterday’s recovery, and is the lowest point since 24 February. |
| It means the index has lost around £100bn of value in the last week alone. | It means the index has lost around £100bn of value in the last week alone. |
| Mining stocks and banks are among the biggest fallers in the City. | Mining stocks and banks are among the biggest fallers in the City. |
| The French, German, Spanish and Italian markets have all dropped by over 1%, with traders fretting about how their economies will suffer if Britain leaves the EU. | The French, German, Spanish and Italian markets have all dropped by over 1%, with traders fretting about how their economies will suffer if Britain leaves the EU. |
| 8.03am BST | 8.03am BST |
| 08:03 | 08:03 |
| Nikkei tumbles and yen soars after BoJ decision | Nikkei tumbles and yen soars after BoJ decision |
| The Tokyo stock market has tumbled by 3% today, after the Bank of Japan left its stimulus programme on hold ahead of the Brexit referendum. | The Tokyo stock market has tumbled by 3% today, after the Bank of Japan left its stimulus programme on hold ahead of the Brexit referendum. |
| Hopes that the BoJ might announce fresh stimulus measures were dashed. Instead, policymakers voted to continue expanding the monetary base at an annual rate of about 80 billion yen. | Hopes that the BoJ might announce fresh stimulus measures were dashed. Instead, policymakers voted to continue expanding the monetary base at an annual rate of about 80 billion yen. |
| That hit stocks, but also triggered a rush of money into the yen. | That hit stocks, but also triggered a rush of money into the yen. |
| Japan’s currency smashed through the ¥104 mark against the US dollar for the first time since August 2014, trading as strongly as ¥103.98 to $1. | Japan’s currency smashed through the ¥104 mark against the US dollar for the first time since August 2014, trading as strongly as ¥103.98 to $1. |
| That will alarm top brass in Tokyo, who would rather see a rather weaker currency (to push up inflation away from around zero) | That will alarm top brass in Tokyo, who would rather see a rather weaker currency (to push up inflation away from around zero) |
| Live scenes from the BOJ as USDJPY cracks 104.00 for the first time since August 2014 pic.twitter.com/I9xPEQGCnq | Live scenes from the BOJ as USDJPY cracks 104.00 for the first time since August 2014 pic.twitter.com/I9xPEQGCnq |
| The BoJ also singled out next week’s EU referendum as a key geopolitical threat to the Japanese economy, along with the “European debt problem”. | The BoJ also singled out next week’s EU referendum as a key geopolitical threat to the Japanese economy, along with the “European debt problem”. |
| No action from #BoJ. Yen soars, #Nikkei closes down 3%. Will their hand be forced if #Brexit fears drives up the value of the yen further? | No action from #BoJ. Yen soars, #Nikkei closes down 3%. Will their hand be forced if #Brexit fears drives up the value of the yen further? |
| Updated | Updated |
| at 8.04am BST | at 8.04am BST |
| 7.51am BST | 7.51am BST |
| 07:51 | 07:51 |
| The agenda: One last Brexit warning from the Bank of England? | The agenda: One last Brexit warning from the Bank of England? |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| It’s Bank of England day. At noon, the Monetary Policy Committee will release its latest decision on interest rates, and say whether is is taking any fresh steps to stimulate the economy. | It’s Bank of England day. At noon, the Monetary Policy Committee will release its latest decision on interest rates, and say whether is is taking any fresh steps to stimulate the economy. |
| No changes are expected. But instead, the MPC is likely to release a fresh warning about the risks posed by next week’s EU referendum. The minutes of this month’s meeting could also highlight the harm already caused by Brexit uncertainty. | No changes are expected. But instead, the MPC is likely to release a fresh warning about the risks posed by next week’s EU referendum. The minutes of this month’s meeting could also highlight the harm already caused by Brexit uncertainty. |
| The financial markets are already in a nervous mood today, after the US Federal Reserve slashed its forecasts for interest rate hikes – and pinned some of the blame on the UK’s referendum vote. | The financial markets are already in a nervous mood today, after the US Federal Reserve slashed its forecasts for interest rate hikes – and pinned some of the blame on the UK’s referendum vote. |
| Related: Federal Reserve puts interest rates rise on hold and blames Brexit | Related: Federal Reserve puts interest rates rise on hold and blames Brexit |
| Also coming up today: | Also coming up today: |
| We’ll be tracking all the main events through the day.... | We’ll be tracking all the main events through the day.... |
| Updated | Updated |
| at 7.51am BST | at 7.51am BST |