[Video] Bank of England Cuts Interest Rates

The FTSE 100 Jumps on BoE Interest Rate Cut

In today’s video update Kris looks at the Bank of England’s interest rate cut and the impact on the pound and the FTSE 100…

In this video you will learn:

  • The British Pound in a post-Brexit UK
  • The FTSE 100 share index swung from small falls to a gain of 1.6% in
  • Both the FTSE 100 and the Pound and been moving sideways for weeks.

Transcript:

Hi Kris Sayce see here back with another video update.

Today we’re going to have a look at another interest rate cut, but not the Reserve Bank of Australia the Bank of England.

Overnight it cut its interest rate by point two five percentage points to zero point two five percent.

This is the impact it had on the British Pound you can see here the pound slumped again this is the big move following the Brexit vote, where the pound went from around about 147 or so all the way down to about 134, 133 and its continued to go sideways but now falling again as the Bank of Englandcuts interest rates.

Now have a look at the next chart. This shows you the FTSE 100 index as you can see in the Bank of England the announced the cut the stock market went up.

It closed up about a hundred and five points overnight so it does show you the in the short term at least, interest rate cuts can have a positive impact on stocks but over the long term we believe that those interest rate cuts are going to have less and less effect.

We’ll keep an eye on what’s happening here and elsewhere in the market and keep you posted.

Thanks for watching.

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