The Brexit referendum has sparked a bloody storm If exiting Europe, the Bank of England will cut interest rates to zero

UK Labour MPs who support staying in EuropeJo CoxOn Thursday, he was attacked and killed while meeting with voters, which has attracted high attention. The pound rose yesterday, with an increase of0.68%. Bloomberg stated that this incident may reduce support for the Brexit camp.



(The picture shows the murdered British Labour MP)Jo Cox)



(Image source:investing.com)


The impact of odds betting on the pound exchange rateForeign exchange gold


There has been a significant change in the support rate for the UK's departure and retention in polls. The support rate for "staying in Europe" has decreased from5At the end of the month82%lower58%. Due to the increasing possibility of Brexit, the GBP exchange rate has been continuously declining, with varying degrees of depreciation against the US dollar, Japanese yen, and Swiss franc. Due to the impact of changes in odds betting on exchange rates, this provides a predictive basis for the exchange rate fluctuations resulting from the Brexit referendum. Foreign media reported that if the result of the UK Brexit referendum is "off", the GBP/USD exchange rate may fall to1.30US dollars; On the contrary, if it is "stay", it may rise to1.50USD.


Brexit vs Studying in Europe - The Bank of England's response measures will be different



Dansk Bank of Denmark stated that if the referendum results in a Brexit, the Bank of England may lower interest rates to0; If the result is to stay in Europe, interest rates may be raised in the first quarter of next year.


If Brexit becomes a reality, Danske Bank expects the Bank of England to implement loose monetary policy to support the economy, which may lower interest rates0.5%lower0And continue to implement quantitative easing policies. The Bank of England has currently ruled out the possibility of negative interest rates, but other central banks that have expressed similar views have ultimately not been able to avoid implementing negative interest rates.


If necessary, the Bank of England may also expand credit and increase banking liquidity through a financing for loan program. The plan stipulates that British banks qualified to participate in the plan can borrow highly liquid British treasury bond bonds from the Bank of England with low liquidity assets (such as mortgages, small commercial loans, etc.) as collateral, and pay a small fee for this; After that, the exchanged British treasury bond bonds were used as collateral in exchange for cheap repurchase loans.


If the result is to stay in Europe, Dansk Bank expects the UK2016Economic growth is expected to occur in the second half of this year, and the Bank of England may experience2017Interest rates will be raised in the first quarter of this year, although there may be risks associated with future rate hikes. Continue reading:http://www.fxgold.com/news/yguo15112q5.html