Golden Opportunity: Post Brexit, Banks Around the World Ponder Opening the Money Taps

by Daily Bell Staff
The Daily Bell

Brexit — how will central banks respond? Policymakers’ existing struggle with low productivity and high debt has become more complicated – Financial Times

This article provides us with a useful survey of what central banks are going to be doing to confront the Brexet-initiated downturn.

Start with the Bank of England. Governor Mark Carney acted quickly to provide liquidity by injecting £3.1bn into banks just after Brexit.

Nonetheless, the pound dropped hugely and UK equities plunged too. The next possible step is a rate cut but the falling pound has already initiated price inflation and a rate cut would add inflationary pressures.

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