by Stephen Flood
GoldSeek
This morning the UK pound slumped as one of the world’s oldest central banks pressed hard on the panic button. The Bank of England was seen to be shouting ‘Pivot! Pivot! Pivaat!’ as they announced they would temporarily suspend their programme to sell gilts and will instead buy long-dated bonds.
In a statement, the bank said that they would be embarking on a “temporary and targeted” bond buying operation.
Although we expect it to be about as temporary and as targeted as a toddler with a paint gun. Unsurprisingly the markets did not see this as a vote of confidence in the British economy and almost anything associated with the former Empire has taken a beating.