EITHER The Bank of England was the first of the major central banks to raise interest rates, after the pandemic crisis. It did so already in 2021, in December, when in the euro zone the official discourse assured that inflation was “transitory” and swore that it was “very unlikely” that the conditions would be met for a rate hike at some point in the year. the year 2022. Now, the The Bank of England itself may have been the first to move in the opposite direction, that is, stop on the path of monetary tightening. Finally, the “pivotWhat, according to several analysts, will central banks eventually have to do, given the economic recession and instability in the markets?
In order to “restore orderly market conditions”, the Bank of England announced this Wednesday morning that it will again intervene in the markets – “with intensity of urgency” but on a “temporary” basis – through the Purchase of British Treasury bonds. The decision, in effect, marks a return to the “quantitative easing” interventions that marked central banks’ response not only to the pandemic crisis but also, several years earlier, to the post-2008 financial crisis.
The pound sinks to an all-time low in the budget plans of Liz Truss and her finance minister
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Source: Observadora
