Bank of England, making the unprecedented move to STOP the slide after BREXIT.

The Bank of England is on the cusp of an unprecedented move to stop Brexit destroying the economy     
by Lianna Brinded
The Bank of England is on the cusp of cutting interest rates to a new historic low again on Thursday in a bid to mitigate an impending economic slowdown caused by a Brexit.
According to a survey in the Financial Times, markets "have already priced in a 75% chance of interest rates being cut from 0.5% to 0.25% this week."
One analyst, for example, Jonathan Loynes of Capital Economics told the FT: “We think the [Monetary Policy] Committee will recognise the dangers of disappointing market expectations and cut the Bank rate by 0.25%."
Britain's interest rates have been at a historic low of 0.5% since March 2009 and before Britain voted to leave the European Union on June 23, the BOE was priming itself to eventually start raising rates again.
Low interest rates makes borrowing cheaper — so for people with debt this is great because your monthly repayments are smaller. However for those with savings, it's a death knell for returns, because you are barely growing your savings pot.
BOE governor Mark Carney already reiterated at a press conference on July 5 that the BoE is ready to inject as much as £250 billion ($324 billion) of extra capital into the financial system, in case of an economic downturn caused by a Brexit, by saying: "The Bank of England is also able to provide substantial foreign currency liquidity if needed."     
He also said the central bank is doing everything it can to ensure stability, and that it has "a clear plan" and "we are rapidly putting its main elements in place, and it is working."
Now analysts believe that those "elements" include cutting interest rates to 0.25%.
On July 5, Carney relaxed lending limits for banks so it would mean the ordinary person on the street and businesses would not feel an economic downturn:
"Our actions [on July 5] alone have released up to £150 billion in new lending capacity to UK businesses and households."
Three-quarters of British banks will immediately have greater flexibility to lend as a result of these measures, he added.
Some markets are already acting crazy in the Brexit vote aftermath. Sterling is already hovering close to 31-year-lows against the dollar and some banks predict that the currency will fall much lower.
Deutsche Bank forecasts that the pound will reach $1.15 against the dollar by the end of the year, against the current exchange rate of just shy of $1.30, and it reckons a euro will buy you 90p, up from its current rate of 85p.
The forecast follows an equally pessimistic call from Goldman Sachs earlier this month, which said the pound could hit $1.20 soon.
http://www.businessinsider.com/bank-of-england-interest-rate-cut-predictions-and-probability-post-brexit-eu-referendum-2016-7

nicko wrote:Again i will repeat some posters on here,"no one takes any notice of a piddling little island which has no effect on the economy of other nations"

Ha fcuking ha.

Business
Jul 18 2016, 7:49 am ET

Bank of America Profit Falls 19.4 Percent as Interest Income Drops
by Reuters
Bank of America, the second-largest U.S. bank by assets, reported a 19.4 percent fall in quarterly profit on Monday as low lending rates dented its interest income.
However, the bank's profit beat lowered market expectations.
Net income attributable to BofA's common shareholders fell to $3.87 billion, or 36 cents per share, in the second quarter ended June 30, from $4.80 billion, or 43 cents per share, a year earlier.
Excluding items, the bank earned 37 cents per share, beating the average analyst estimate of 33 cents, according to Reuters.
Net interest income fell 12 percent to $9.2 billion in the quarter.
Like all big banks, BofA's ability to boost earnings has been hampered by persistently low interest rates and stricter capital requirements. That has meant it has had to resort to heavy cost-cutting to drive earnings.
BofA's non-interest expenses fell 3.3 percent to $13.49 billion in the latest quarter.
"We continued to invest in core growth areas and to manage expenses, which were down 3 percent year over year to a level not seen since 2008," Chief Executive Brian Moynihan said in a statement.
BofA has been closing retail branches and reducing overall headcount, while increasing hiring for sales staff.
Before Britain's June 23 vote to leave the European Union, the U.S. Federal Reserve had been widely expected to raise interest rates at least twice this year, after raising them for the first time in nearly a decade in December.
Now, there are doubts that there will be any rate hike at all in 2016.
The bank, whose shares were little changed in premarket trading, said provisions for bad loans rose 25 percent to $976 million.
The Charlotte, North Carolina-based bank had been expected to be one of the worst-performing banks in the quarter, in part due to its large exposure to the energy sector.
Of the other big U.S. banks that have reported so far, JPMorgan's profit fell 1.6 percent, Citigroup's 14 percent and Wells Fargo by 3.5 percent.
Bank of America's adjusted trading revenue increased 11.7 percent to $3.70 billion in the quarter. Fixed income, currency and commodities trading revenue rose 22.2 percent, while revenue from its smaller equities trading business slipped 7.6 percent.
Moynihan said in June that the bank's trading business was on track for mid-single digit percentage revenue growth.
Total adjusted revenue fell 7.02 percent to $20.62 billion.
BofA said last month it would buy back $5 billion of shares after clearing the latest round of Federal Reserve stress tests that evaluated its ability to withstand a financial crisis.
Up to Friday's close of $13.66, Bank of America's shares had fallen about 19 percent since the start of the year. The KBW bank index fell 8 percent over the period.
http://www.nbcnews.com/business/business-news/bank-america-profit-falls-19-4-percent-interest-income-drops-n611446