Pound drops further following speech.

Mark Carney in his Bank of England (BoE) speech yesterday said that following the Brexit vote there probably would be need for ‘some monetary policy easing”, this had an immediate effect on the pound sterling which fell again against major currencies.

Carney in his speech to business leaders reportedly said “In my view, and I am not pre-judging the views of the other independent Monetary Policy Committee (MPC) members, the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer,”

The expectations are that the Bank rate could be at 0% by the mid September this year, that we would see two rate cuts of 25bp in that time, however the BoE are sceptical that we will move into negative territory with interest rates.

The Governor noted that the BoE can ‘deploy a wide range of instruments” the MPC will make an initial assessment on 14th July and a full assessment complete with a new forecast will follow in the August Inflation Report.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Owner-Occupiers Drive Resilient Commercial Property Market

Buying Becomes 37% Cheaper Than Renting The latest Commercial Property Demand Index from specialist property finance expert, Rangewell, reveals that while investor appetite across the sector held steady in Q2, strong levels of owner-occupied commercial mortgage activity are helping drive market performance, as business owners increasingly move from renting to buying their long-term premises for…
Read More
Breaking News

One year of Labour: Property market performance review

Investors left waiting for planning reform and incentives but majority plan to increase real estate allocation   Biggest failures: Lack of incentives for developers and investors, and ineffective planning reform Top priorities: Planning reform, tax incentives, and attracting international capital Where opportunities lie: Data centres, warehousing & logistics, and later-life housing Real estate debt is…
Read More
Estate Agent Talk

Plumbing Red Flags Every Homebuyer Should Watch Out For

Buying a home is one of the most significant investments a person can make. While factors like location, square footage, and curb appeal often steal the spotlight, what’s hidden behind the walls is just as important—especially the plumbing. Overlooking plumbing issues during the home-buying process can lead to costly surprises down the road. That’s why…
Read More
Breaking News

Social homes are key in solving the housing crisis

The Government has announced that at least 60% of the £39 billion allocated for affordable housing, around 300,000 homes, will be at social rent levels. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “This is superb news because unaffordable housing is the greatest barrier to growth and a social housing revolution…
Read More
Rightmove logo
Breaking News

Rightmove launches Extension Explorer experiment

Rightmove, the UK’s largest property platform, is experimenting with a new feature to give home-movers access to more information about the extension potential of a property. The new feature follows on from the success of its Renovation Calculator, and forms part of Rightmove’s suite of valuation tools to help owners understand the value and potential…
Read More
Breaking News

Golden Age of UK property investment is over

Research comparison of investor returns from stock markets and housing from Rathbones Group concludes property boom has passed The longstanding British obsession with property as a means of building wealth is outdated as today’s house buyers will not match the gains of past generations, Rathbones, a leading UK wealth and asset manager, concludes in new…
Read More