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"UK interest rates cut in emergency move" Slashed from 0.75% to 0.25%.

If some/most of the difference gets passed on by banks, and you're not planning to move soon, it may be good to think about remortgaging and locking in the lower rate for longer... bbc.co.uk/news/business-…
Bigger picture, this is the big one! There's only room to cut another 0.25%, unless the base rate turns negative.

Besides, you start getting into *really* weird territory, like the banks in Denmark that offered negative interest rate mortgages...
theguardian.com/money/2019/aug…
So if this move, combined with the measures to be announced in the Budget today, doesn't stabilise the market... it's very hard to see what will.
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More from @uk_domain_names see all

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Edwin Hayward 🦄 🗡, 🇬🇧 🔜 🇪🇺
@uk_domain_names
The OBR has just published a new assessment of the UK's economy.

It has very damning things to say about Brexit: "In broad terms, this implies around a 4 per cent loss of potential GDP over 15 years, relative to what would have happened under existing trading arrangements."
"We estimate that the economic effects of the referendum vote have so far reduced potential output by around 2 per cent, relative to what would have happened in its absence."
Broadly speaking, we believe that around one third of the long-run hit to productivity from Brexit has already happened, that another third is likely to come over the forecast period and the rest comes through beyond our forecast horizon."
Read 4 tweets
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Edwin Hayward 🦄 🗡, 🇬🇧 🔜 🇪🇺
@uk_domain_names
If you bought my book "Slaying Brexit Unicorns" but skipped reading the Appendices, can I gently suggest a quick dip into "Appendix E: How Politicians Manipulate the Narrative". Several of the techniques I outlined there seem to have been exploited for today's Budget release...
(Sorry if you don't have a copy and it's not relevant to you. But enough people do - thank you! - that it seemed worth pointing out that the material is buried there.)
Here's the relevant ToC section from the Kindle edition (weird links are because it's an app on my phone)
Read 3 tweets
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Edwin Hayward 🦄 🗡, 🇬🇧 🔜 🇪🇺
@uk_domain_names
"UK more nostalgic for empire than other ex-colonial powers" Thoroughly depressing survey. Cements notion of a significant minority of small-minded xenophobes yearning for Empire.

Education failure, mixed with dangerously rose-tinted nostalgia. Pathetic. theguardian.com/world/2020/mar…
And Brexit has made the trend worse, because it has simultaneously highlighted these trends, and "legitimised" them via the social proof of knowing many others feel the same way. It is going to take generations to scrub this blot from the national psyche, even *if* we start now!
Epitomised by Michael Portillio's Great Asian Railway Journeys programme. He went to truly fascinating places, but it was a chore to watch (I persevered because it covered so many wonderful destinations) because he kept coming back to Empire Empire Empire.
bbc.co.uk/programmes/m00…
Read 4 tweets

Related threads

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Alain Asmar
@AlainAsmar
A tale of complacency and risk-taking
Banking is a straight-forward industry. You give them your money for a fee, and they lend it someone else for a higher fee, pocketing the difference as a compensation for acting as a conduit of capital and credit between the stakeholders.
Disregard for a moment everything you hear about banking practices and their investments (securities, derivatives, leveraged buyouts, M&A advice, etc.), Lebanese banks, for as long as we have known them, have followed the very simple model mentioned earlier.
The difference between a Lebanese bank and, say, an Indonesian bank, is the compensation average depositors receive for loaning the banks their salaries and savings.
Read 23 tweets
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EHSANI2
@EHSANI22
THREAD on #Lebanon Finances

Is depositor money really gone?

How could it have disappeared?

Is this just a short term issue?

Will depositors get their money back once a govt is formed?

Hair cut?

Size?

When?

How?

And most importantly WHY?

Read on for Answers =>
2-As image below shows

$1 used to buy around 4 LBP by end of 1982

By end of 1985, it rose to 18

By end of 1990, it was at 790

By August 1992, it jumped to 2382

From that high it drifted down a bit

Then it was fixed 1507.5 since December 1997

BUT HOW WAS IT FIXED?
3-Currency moves are often volatile. In long run however, they do follow fundamental Eco trends. Import/export balance is one driver. The other is capital inflow/outflow. The more one exports & the more capital flows into a country, the stronger the local currency usually gets
Read 29 tweets
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Yorick de Mombynes
@ydemombynes
My 140 favorite quotes from The Ethics of Money Production (2008), by Jörg Guido Hülsmann
1. “#Money is omnipresent in modern life, yet the production of money does not seem to warrant any moral assessment”. J.G.Hülsmann
2. “To be sure, central bank representatives are lecturing the public on the importance of business #ethics; but their concerns do not seem to apply to themselves”. J.G.Hülsmann
Read 142 tweets
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Stefano Bacchetti
@Bacc_investor93
Negative rates (NR) are contractionary. There are two types of rates that CB could reduce to below zero.
- the policy rate (rate at which CB lends to banks against good collateral)
- interest rate on excess reserves (the rate CB pays on reserves parked by banks at the CB)
1/
let's focus on the latter. NR on excess reserves can be thought of as a safe deposit charge, that is a tax on deposits. The burden of this tax will fall either on depositors or on borrowers. If interest rates are reduced too much and
2/
and hold at those levels for a long period of time, banks net margins will be squeezed, and since NR are implemented in bad times, this could lead banks to impose NR on deposits and/or raise lending rates in order to maintain their net margins
3/
Read 13 tweets
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Rishi Bagree 🇮🇳
@rishibagree
As per Cong mouthpiece Indira Gandhi imposed #Emergency bcoz of Eco crisis,Unemployment, inflation & Foodgrain shortage
Million dollar question is who was responsible for such a pathetic situation of the country & particularly when d so called Iron Lady was ruling for last 10 yrs
Some data :

➡Average inflation rate during Indira Gandhi's 15 year tenure was 20%

➡Bank Interest rates were 16-18%

➡And with draconian Income Tax Slabs during Indira Gandhi times whatever you earned it belongs to government. This was the foundation of Black money generation
That is how the Nehru Gandhi Dynasty ruled.That is why they installed just 16 GW power in first 30 yrs of rule. Everything got taxed. No jobs after passing out. People looked to get scholarships & go abroad. 7 years wait to get scooter, telephone, gas, phone

Days of the Dynasty
Read 4 tweets
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Christophe Barraud🛢
@C_Barraud
🇨🇳 #CHINA Q3 GDP Y/Y: 6.5% V 6.6%E (slowest growth since Q1 2009)
*NBS spokesman Mao Shengyong said that the international situation was bringing “downward pressure” on China.
*Link: bloom.bg/2RVX1ZA
🇫🇷 🇪🇺 🇨🇳 French tire maker Michelin warned of declining sales in Europe and #China in the second half of the year, dragging down shares of its competitors in the U.S. and Europe - Bloomberg
*Statement: bit.ly/2EujhqH
🇺🇸🇨🇳🇪🇺 In a volley of filings, the EU, #China and the U.S. this week escalated disputes over new U.S. metals tariffs, the European response to those levies, and Chinese intellectual property practices - Bloomberg
bloomberg.com/news/articles/…
Read 634 tweets

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