Interest Rate and Bank

growth forecasts: Governor Mark Carney has signaled there will be more stimulus during the summer, but he has expressed concern about what a big interest rate cut would do to the profits of UK based banks, according to Euro News. He has also said he would not want to follow the example of the European Central Bank and the Bank of Japan by cutting rates below zero. The main interest rate stays at 0.5 percent where it has been for more than seven years. Action is likely on August 4 when the Bank of England is due to release its latest Inflation Report along with new growth forecasts. That is what we have seen elsewhere in the world and ultimately that might have had some very unfortunate feedback effects into gilt markets, maybe international investors starting to demand a premium on sterling assets and who knows how that might have fed through into longer term interest rates, it might have actually had the opposite effect. Monetary policy summary and minutes of the MPC meeting ending on 13 July 2016 https://t.co/KxIXEgjl8c #Bank Rate Bank of England July 14, 2016Market analyst Mike Ingram at BGC Partners said not changing rates right now makes sense with the pound and the British government borrowing costs relatively stable: Had they delivered an interest rate cut, you can be fairly sure that the market appetite for further cuts would have remained insatiable. (news.financializer.com). As reported in the news.