Bank Of England Just Cut Rates Too

About one week ago, US Fed Powell cut interest rates by 0.5%, its biggest single cut in more than a decade. This was a move to aid the economy from COVID-19. I remind because I was in from of my computer watch the stock market rally only to fall and continue the sell-off that day, along with bond yields might I add.

England has been out of the news for quite some time. It’s probably more likely COVID-19 has been stealing all the headlines in recent weeks. In terms of England the last that I know was the Conservatives won the UK’s General Elections and as a result, bought some clarity to the Brexit drama that’s been going on for three years. Although General Elections occur every 5 years, the result of this Election held the fate of not only England, but in some respect, the EU.

Today England was back in the news, but it had nothing to do with Brexit and had everything to do with COVID-19.

The Bank of England has cut interest rates in an emergency move to bolster the economy during the coronavirus outbreak.

The monetary policy committee voted unanimously to slash the bank rate from 0.75% to 0.25% at its first unscheduled meeting since the depths of the 2008 financial crisis as part of a coordinated package of measures alongside the chancellor Rishi Sunak’s budget.

The Bank of England rate cut came as official figures showed that GDP growth in the UK flatlined in January before the virus hit Europe, adding to fears that the economy is in a weak position heading into what could be the worst phase of the outbreak.

Source

The Bank of England was one of the last remaining big banks in the world to not cut rates, so now that England as fallen in line with all the other central banks, where is the British Pound heading next?

Monthly Chart (Curve Time Frame) - monthly supply is at 1.4700 and monthly demand is at 1.2100.