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  • Bank of England looking more urgently at negative rates, riskier assets: Haldane

    From reuters.com

    The Bank of England is looking more urgently at options such as negative interest rates and buying riskier assets to prop up the country’s economy as it slides into a deep coronavirus slump, the BoE’s chief economist was quoted as saying. The Telegraph newspaper said the economist, Andy Haldane, refused to rule out the possibility of taking interest rates below zero and buying lower-quality financial assets under the central bank’s bond-buying programme. “The economy is weaker than a year ago and we are now at the effective lower bound, so in that sense it’s something we’ll need to look at – are looking ... (full story)

  •  Guest
  • | IP XXX.XXX.65.114
Companies like Virgin and British Airways are cutting half of their workforce. This is replicated across the economy. Well paid and low paid jobs are all vanishing, and are not being replaced. There is a massive lack of real INCOME, for real PEOPLE. How exactly is the BOE's negative rates and buying of junk bonds going to replace this lost INCOME and JOBS? This is monetarism gone absolutely bonkers! To a monetarist banker with a hammer, everything looks like a nail
Somebody has to pay right...let me guess the poor people?
This is a perfect reason for a gap down to 1.2050 when market opens tonight!
Rejections spur me for greatness!!!
They should have done more to normalise interest rates back in 2014 and focus on structural issues such as zombie companies and stagnating productivity. Instead they took the easy route by excluding house prices from inflation indicators (the majority of an households expense) to "keep inflation low" in order to continue justifying keeping rates at the lower bound. This helped to reduce pension liabilities of the corporate sector by inflating assets and giving people a phantom wealth effect. Now we are in a genuine emergency we have to talk about the hocus pocus of negative rates rather than just lowering rates. This can't end well - basically the end of market forces and efficient capital allocation.

RANT OVER!!!
Confucius: the man who broke the mountain was the same man who started ...
Soon, $1 dollar will = to £1.
Weekend gap coming soon
If you can keep your head while all around.......

A lesson soon forgotten is that crises of all sorts happen all the time. Media feel (and have a vested interest) that the best message is doom and gloom such as these posts and 'climate change' alarmist.

Financial traders worth their salt see opportunities in panics. If its profits you seek, seek opportunities in a world beyond the crisis.
All countries need to consider negative rates. It's real rates which matter.
Margin calling time
Quoting k3nshinz3139
Margin calling time
if you buy this currency, best option is close it, and prepare for always selling
Quoting penyuperwira
Weekend gap coming soon
Gap down on gbp (all pairs)
Quoting afevir
GBP always diving wkwkwk
Quoting Georginson
This is a perfect reason for a gap down to 1.2050 when market opens tonight!
i think more, long term gbp will dive into 1.10
GBP will definitely gap down but the effect of negative wont that grave... every country is responding to the pandemic the best way they can.
Quoting AnniLi
All countries need to consider negative rates. It's real rates which matter.
Switzerland has had negative rates for some time have they not?

I also believe that Japan has negative rates as well don't they?

The purpose of negative rates is to pump liquidity into the system but from Economic 101 it should produce hyper-inflation as a result correct?
...because you never know - until you do!
Quoting AnniLi
Financial traders worth their salt see opportunities in panics. If its profits you seek, seek opportunities in a world beyond the crisis.
Anni as an experienced member of the community would you mind sharing some of your thoughts on a world beyond this crisis...for example what time frame are you looking at - weekly, monthly, yearly (not talking about trading but when this crisis "should" resolve and return to "normal")
...because you never know - until you do!
"Riskier" keyword here, going all-in on a night out at the roulette table
I still have yet to see the effects of negative rates "propping" Japan and Europe up.
The solution is (x).
Ponud already lost around 300 pips this week. But strange to see euro stand firm and strong above 1.08.
Gold also open with gap up I guess.
Hmm ans the GBPUSD is not looking good anyway:

https://youtu.be/rb6ZsNftKOU
Technical Analyst & Trader @ Vikinsa
Yes lets just keep lending and spending typical Keynesian fuckwit
Quoting Guest
Companies like Virgin and British Airways are cutting half of their workforce. This is replicated across the economy. Well paid and low paid jobs are all vanishing, and are not being replaced. There is a massive lack of real INCOME, for real PEOPLE. How exactly is the BOE's negative rates and buying of junk bonds going to replace this lost INCOME and JOBS? This is monetarism gone absolutely bonkers! To a monetarist banker with a hammer, everything looks like a nail
wise ... however during the Covid 19 , which country is shaping better. Do you think there is only British airway airline on the earth ... Or do you think Lufthansa is flying everyweher.
I'm glad all of you are bearish, it conforts me to buy
COT: The precious data ignored
negativ rate with inflation rate at 1.5
will drive to hyperinflation
4xbook Return This Year: 110.0%
Said this weeks ago....

Sue me
Beware of robber banks (RB), bad advisors.
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  • Story Stats
  • Posted: May 16, 2020 8:48pm
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 27  /  Views: 14,602