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Business

Bank of England: No Brexit rate cut, yet

Opening sequence

Opening sequence

Business

Bank of England: No Brexit rate cut, yet

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17:51
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COMING UP:Bank of England: No Brexit rate cut, yet

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Transcript

00:00:00
>> The Bank of England on Thursday holding fire on rates. It’s benchmark interest rates staying put at the record low .05%. That surprised many traders who had expected a cut to half that level. Reuters chief financial models correspondent, Jamie McGeever.>> Well the pound has jumped as one would expect, no policy easing, the pound has risen to about 1.33.
00:00:23
It's been in a hugely volatile range, as it has been pretty much every day since Brexit. The pound has traded in a range of about $0.03 against the dollar, quite remarkable for a G4 currency.>> Now the bank says it's likely to deliver some kind of stimulus in three weeks' time.
00:00:40
It says that could come as a package of measures. A hint perhaps that it will also resume it's program of bond buying. Governor, Mark Carney, now watching economic states for signs of a downturn. Next week's purchasing managers index the first key number. Carney also waiting to see whether new finance minister, Phillip Hammond, plans to ease back on austerity.
00:01:03
Mark Carney has made it clear that the Bank of England is prone to easing policy, in response what will Hammond and his colleagues and the treasury do, and some speculation that they might have to ease fiscal policy and certainly not tighten as quickly as his predecessor, George Osbourne had wanted to.
00:01:23
Tony has already warned that the financial risks of Birxit are materializing. Investors have been locked out of major commercial property funds. While data released early Thursday showed a slump in sentiment in Britain’s housing market. All the signs are that rate cuts won’t be long in coming.