Interest Hike: BoE throwing a pebble in the pond

Interest Hike

The interest hike of 25 basis points will happen. That is a given. However it is too early to say that it may be the first of many. It is a symbolic decision. The Bank of England is saying that unsecured lending has got out of control. Furthermore it is too high and uncontrolled. The Bank of England has taken its job very seriously. Acting as a barometer for the health of the economy and the business activity in the UK. Many of the banks based in London have crafted contingency plans to ensure that they satisfy both the Bank of England and Head Office on the consequences on either a No Deal Brexit or a Hard Brexit.

This news has been overshadowed by the claim that the City of London could lose 75,000 jobs. David Buik, Senior Market Commentator for Panmure Gordon says that this is the worst possible perception and is in fact verging on the hysterical. He goes on to state that over the past 70 years London has created the perfect environment for financial services. Frankfurt cannot house 25,000 to 30,000 bankers and their families and neither can Paris. Moreover Dublin, Brussels and even Amsterdam could house them; however it would be very damaging for the banks themselves.

Good sense will prevail is how David signs off. The Bank of England has thrown a pebble in the pond to ensure that the government are listening to what is being said by the financial industry.

Further Information

You can see more from David Buik on Core Finance by using this link: http://www.corelondon.tv/?s=david+buik