BofE cuts interest rates to 0.25% - FREE

BofE cuts interest rates to 0.25% - FREE

City of London webThe Bank of England has cut interest rates to 0.25% and signalled further cuts might be forthcoming if the UK economy slumps.

Mark Carney, the Bank’s governor, announced a raft of stimuli for the UK economy, and committed to buying some £60bn of UK government bonds and another £10bn of corporate bonds.

It also slashed its growth prediction for 2017 down to 0.8% from 2.3% anticipated in May.

Carney said a majority of the nine-member Monetary Policy Committee (MPC) backed another cut if future data showed the country’s economy was deteriorating.

Carney said: “By acting early and comprehensively, the MPC can reduce uncertainty, bolster confidence, blunt the slowdown, and support the necessary adjustments in the UK economy.”

Re/insurers in Europe are already facing pressure on the asset management side, generally posting lower investment returns for 2016 in most of the interim results so far published.

This week rating agency Standard & Poor’s put a report out noting that most insurers in Western Europe are exploring changes to their investments, but strategic asset allocations have stayed stable.

Reactions will be addressing this issue in depth at the Reactions UK Asset Management Conference 2016, set for the morning of September 20, at Grocers’ Hall in London.

For more details about attending the investment event, speak to Beatrice Boico: Beatrice.boico@euromoneyplc.com +44 (0)20 7397 0619.

For commercial opportunities at the event, speak to Goran Pandzic: gpandzic@euromoneyny.com +1 212 224 3711.

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