Britain'S Departure From Europe Will Accelerate The Rate Cut By The Bank Of England.

Britain's Euro retreat referendum has come all the way. For every faction of the two factions, every pound and every turn has been accompanied by the ups and downs of the pound. This Friday (June 24th), the pound has set a history. After the referendum result shows that, after breaking away from the European Union, the pound has hit its biggest single day decline in history. The pound has reached the lowest level in 1985 against the US dollar, and few analysts expect the pound to recover all its losses in the foreseeable future against the US dollar.

The pound rebounded against the US dollar against the US dollar at a relatively low level and recovered a certain decline. And from the speech of British Prime Minister Cameron, it is found that the possibility of implementing the euro free action in the short term can be found. At the same time, the negotiations between Britain and Europe will continue for two years according to the fiftieth provisions of the Lisbon treaty, which means that the United Kingdom will be a marathon protracted war, which will undoubtedly provide an opportunity for the pound to counterattack. However, perhaps the sterling shorts may be gratified by the fact that the British central bank's monetary policy conference is now coming out of the British referendum, and will the Bank of England cut interest rates further?

After the release of the UK's results, the Bank of England governor Carney imitated the European central bank governor Delagi and promised that the European Central Bank would not hesitate to take further steps after the British voted to leave the EU. The Canadian governor, who had suffered the most turbulent period in the 320 year history of the Bank of England, said he was ready to provide additional liquidity of 250 billion pounds if necessary. Goldman Sachs and Credit Suisse analysts believe that Carney said the "further measures" will include the latest interest rate cuts in August.

Chief Global shares Goldman Sachs, a strategist Peter Oppenheimer, has predicted that Carney may introduce credit easing measures at the upcoming BBOC meeting in July, including the purchase of corporate bonds and the subsequent reduction in interest rates by 25 basis points in August. Goldman Sachs said that for Europe, the biggest single macro risk this year is Britain's decision to break away from the European Union through a referendum.

Neville Hill and other analysts at Suisse predicted the UK Central Bank It will reduce interest rates from 0.5%, which has not changed since 2009, to a record low of 0.05%, and will also launch a new 75 billion yuan quantitative easing plan. They said that if the pound fell into disarray, the Bank of England would take action as early as July. And after the collapse of Lehman Brothers, the Bank of England has cut interest rates by 4.5% in 6 months.

Morgan Stanley also expects the Bank of England to have a "relaxed tendency", but thinks it will "slow down interest rates", but is ready to intervene in the market, especially in the pound and the bond market. Be responsible for Finance The stable UK monetary policy committee will meet in June 28th as planned, and the financial stability report will be released in July 5th.

Mike Amey, head of the pound's portfolio management at Pacific Asset Management Co, said that after the British vote is out of the EU, the Bank of England may reduce its key interest rate to zero. Britain's economic growth will be dragged down by uncertainty caused by the referendum. If the Bank of England believes that other measures should be taken in addition to lowering interest rates to negative values, it may expand QE.

The Bank of England announced on its website that the monetary policy committee (MPC) will announce its next interest rate decision in July 14th. The full minutes of the meeting will also be announced on the same day, and MPC will announce its next inflation report in August 4th. The British referendum's decision to return to Europe means that the economy must be adjusted according to the new trade relations. The Bank of England will make efforts to ensure that the financial system can operate effectively when the economy is adjusted, so that the impact of employment and economic growth will not be amplified.

The Bank of BFA, one of the largest pound before the referendum, expects that the Bank of England is expected to announce a 50 basis point cut by the end of August and announce the new QE by the end of November. Dominic Bryant, economist at farba bank, wrote in a report that it is expected that the Bank of England will announce 100 billion pounds of quantitative easing before the end of November.

The Bank of Paris in France expects the UK economy to stagnate in late 2016 and early 2017 due to weak investment. In addition, the Bank of Paris in France believes that compared with the outcome of the referendum in Europe, Europe will lower the GDP in 2018 by 2 percentage points. The Bank of Paris, France, reduced the estimated third quarter sterling exchange rate from 1.58 US dollars to 1.35. At the same time, Forex.com of Gain Capital Holdings believes that the pound may fall to 1.30 against the dollar, or even 1.25.Janus Capital Group expects the end of the pound to be around 1.20 dollars.