Finally it happened. After the Brexit storm, the Bank of England has decreased the money value, something that has not happened since 2009.
But it is not the only announcement: they will also start a plan to provide liquidity to the banking in order to keep credit flowing to businesses and families, the main problem that could colaps the British economy.
During the last meeting, they decided not to move the policies that were still working, but, after the consecuences in the international impact that the new British situation could have after the final exit from the EU, they are now trying to stop any further problem in the economy. This is also a reply to the many companies that are thinking about the possibility to move their headquarters and also operations far away from London to avoid any inconvenience in their portfolios after the disconnection.
But let’s talk about the concrete mesurements they have announced:
- 100.000 million pounds for the banks in order to continue offering credits to the citizens and the real economy. This way, the shopping impact will be lower and the inflation could be fought from the very first moment.
- The purchase of soberaign bonus for an amount of 60.000 million pounds that can be increased during the medium term in case of need.
The consecuences of the announcement
Of course, after this new policies in the Bank of England, markets have reacted.
The Pound has decreased its value in comparison with the dollar, but also if we put together the comparison between the Euro, but although all these, the London Stock is saving the numbers with a rise of about the 0.5%.