This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jul/14/bank-of-england-interest-rates-cut-brexit-record-low-today-business-live
The article has changed 15 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Bank of England to reveal interest rate cut decision – business live | Bank of England to reveal interest rate cut decision – business live |
| (35 minutes later) | |
| 8.28am BST | |
| 08:28 | |
| Bloomberg has polled the City, and confirmed that a majority of economists predict a rate cut at noon today. | |
| But a significant majority believe the Bank of England will hold off until they have more information about how the economy is faring. | |
| Here’s the details: | |
| Thirty of 54 economists asked by Bloomberg predict a reduction, with the majority of those seeing a cut to a record-low 0.25 percent. Still, a lack of data on the outlook means 24 of those surveyed see no change this month. | |
| More here: Bank of England Rate Cut in Focus as Brexit Rattles Economy | |
| 8.24am BST | |
| 08:24 | |
| Pound up ahead of rate decision. | |
| The pound is rallying his morning, up three-quarters of a cent against the US dollar at $1.322. | |
| That suggests traders aren’t expecting a massive new stimulus boost from the Bank of England (as this would typically weaken the currency). | |
| Investors may also be reassured that Britain now has a new prime minister, and will soon have a new cabinet. That provides more certainty, despite some surprising appointments.... | |
| TELEGRAPH: Matt nails it #tomorrowspaperstoday pic.twitter.com/Xvl75QsRCB | |
| 8.06am BST | |
| 08:06 | |
| Hammond: Economy has taken a Brexit shock | |
| Philip Hammond is now speaking on Sky News, as his whistle-stop tour of the TV studios continues. | |
| He warns that the UK economy has “taken a shock”, as businesses and consumers weren’t expecting the public to vote to leave the European Union. | |
| The number one challenge is to stabilise the economy, send a message that Britain is “open to business”. | |
| He adds: | |
| We are not turning our back on the world. We are determined to maintain our outward-looking stance, and determined to maintain the prosperity of our people. | |
| 8.01am BST | |
| 08:01 | |
| Chancellor Hammond backs Mark Carney | |
| Britain’s new finance minister has given the Bank of England a vote of confidence, as it prepares to possibly cut interest rates. | |
| Philip Hammond has told the BBC that Mark Carney is doing an “excellent job”, and revealed he’ll be meeting the governor this morning. | |
| He also warned that the UK economy is already suffering from Brexit uncertainty. | |
| New Chancellor Philip Hammond says Brexit has rattled the markets with firms putting decisions on hold | |
| New Chancellor Philip Hammond says Brexit has rattled the markets with firms putting decisions on hold | |
| Hammond has also confirmed that he won’t deliver an ‘emergency budget’ in the next few weeks. | |
| “The prime minister made clear we will do an autumn statement in the usual way in the autumn and we’ll look carefully over the summer at the situation. | |
| I’m seeing the governor of the Bank of England this morning and we’ll take stock of where we are.” | |
| The emergency budget idea was floated by his predecessor George Osborne - who has been relegated to the back benches. | |
| 7.29am BST | 7.29am BST |
| 07:29 | 07:29 |
| The Agenda: Will Bank of England cut rates today? | The Agenda: Will Bank of England cut rates today? |
| Good morning. | Good morning. |
| There’s one question on the lips of investors worldwide - will the Bank of England slash UK interest rates to fresh record lows today? | There’s one question on the lips of investors worldwide - will the Bank of England slash UK interest rates to fresh record lows today? |
| With Britain at risk of recession following the Brexit vote, many economists in the City are predicting that rates will be cut to 0.25% at noon London time. | With Britain at risk of recession following the Brexit vote, many economists in the City are predicting that rates will be cut to 0.25% at noon London time. |
| That would end a seven-year stretch in which borrowing costs have been pegged at 0.5%. | That would end a seven-year stretch in which borrowing costs have been pegged at 0.5%. |
| Governor Mark Carney has already given clear signs that the BoE will act soon. Two weeks ago, he declared: | Governor Mark Carney has already given clear signs that the BoE will act soon. Two weeks ago, he declared: |
| “In my view, and I am not prejudging the views of the other independent MPC members, the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer.” | “In my view, and I am not prejudging the views of the other independent MPC members, the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer.” |
| And as this chart shows, investors reckon there’s an 80% chance of a rate cut today: | And as this chart shows, investors reckon there’s an 80% chance of a rate cut today: |
| And swaps say... CUT! Bank of England decision due at noon in London #BrexitWIRP | And swaps say... CUT! Bank of England decision due at noon in London #BrexitWIRP |
| But it’s not a nailed-down certainty. The Bank of England could decide to leave interest rates on hold today, and wait until August to respond to Britain’s new economic challenges. | But it’s not a nailed-down certainty. The Bank of England could decide to leave interest rates on hold today, and wait until August to respond to Britain’s new economic challenges. |
| They also have to consider inflation, which could burst back into life as the weak pound forces up the cost of imported goods (and the UK imports a lot). | They also have to consider inflation, which could burst back into life as the weak pound forces up the cost of imported goods (and the UK imports a lot). |
| Rate cuts aren’t the only weapon in Mark Carney’s arsenal. The BoE could launch a new quantitative easing programme – pumping more money into the economy, by buying bonds from commercial banks. Or it could announce new measures to boost lending to the real economy. | Rate cuts aren’t the only weapon in Mark Carney’s arsenal. The BoE could launch a new quantitative easing programme – pumping more money into the economy, by buying bonds from commercial banks. Or it could announce new measures to boost lending to the real economy. |
| The decision comes at noon today, along with the minutes of this month’s meeting. They will give an insight into the Bank’s thinking about the state of the UK economy, and the consequences of the Brexit vote. | The decision comes at noon today, along with the minutes of this month’s meeting. They will give an insight into the Bank’s thinking about the state of the UK economy, and the consequences of the Brexit vote. |
| Expect the markets to move sharply at noon -- especially if the Bank does something unexpected.... | Expect the markets to move sharply at noon -- especially if the Bank does something unexpected.... |
| We’ll be tracking the build-up to the big decision, and instant reaction and analysis from noon. | We’ll be tracking the build-up to the big decision, and instant reaction and analysis from noon. |
| Plus other key developments in the City and beyond, as Britain’s new chancellor - Philip Hammond – gets to work..... | Plus other key developments in the City and beyond, as Britain’s new chancellor - Philip Hammond – gets to work..... |
| Updated | Updated |
| at 7.46am BST | at 7.46am BST |