Pound plummets as Bank of England warns about Brexit uncertainty

RBI cuts repo rate in first policy review under new governor

RBI cuts repo rate in first policy review under new governor

Monetary Policy Committee cut the repo rate by a quarter of a percentage point to 6.25 percent.

The BoE said on Thursday a survey it conducted of more than 200 businesses showed that half had begun to prepare for a no-deal Brexit, something a majority expected would cause the economy to shrink and unemployment to rise.

At the current interest rate of 8.45 per cent for home loan, a person with a loan amount of Rs 50 lakh for a tenure of 20 years pays Rs 43,233 per month towards EMI. As widely expected, MPCs unanimously opted to keep rates and the APP unchanged, yet at the same time, chose to downgrade this year growth's forecast from 1.7% to 1.2%, as a result of mounting Brexit uncertainty. All in one, market players believe that, with a deal Brexit, the central bank will pull the trigger, the reason beyond an over 100 pips bounce in GBP/USD.

The Bank slashed this year's growth forecast to 1.2 percent - the lowest since 2009, when the economy slumped 4.2 percent at the height of the recession. Its growth forecast for 2020 was also cut to 1.5 per cent.

The Governor of the Bank of England, Mark Carney leaves after a news conference at the Bank of England in London, Britain February 7, 2019.

The BoE said that in the run-up to Thursday's announcement, markets were pricing in its Bank Rate reaching 1.1 percent by the end of 2021, compared with 1.4 percent at the time of its last forecasts in November.

'A period of softer growth domestically and in the rest of the world was likely to be prove only temporary, ' the Bank said.

At the end of past year, the BoE warned a no-deal Brexit and a sudden loss of confidence among foreign investors could hammer the economy more than the global fianncial crisis did.

Hayden Panettiere Doesn't Spend 'Much Time' With Daughter Following Mental Health Treatment
Hayden Panettiere appeared to throw it back to the haters this evening, amid claims she hardly sees her four-year-old daughter. Panettiere has always been a target of tabloids and bloggers - and her parents' fractured relationship often made headlines .

Since taking office December 12, Das has eased banks' asset recognition norms for medium and small scale enterprises, removed lending curbs on three weak state-run banks and has agreed to consider payment of an interim dividend to the government.

Last week the U.S. Federal Reserve signalled an end to its three-year run of hikes. His resignation raised questions over the independence of India's central bank.

The Bank said growth likely halved to 0.3 percent in the final quarter of past year - down from 0.6 percent in the previous three month period and estimated it will fall again to 0.2 percent in the first quarter of 2019. Policymakers predict inflation will rise this year but remain within the RBI's target range.

The bigger picture remains weak.

Brexit is causing the United Kingdom economy to weaken, it said, cutting its 2019 growth forecast to just 1.2%, the lowest since the financial crisis.

It repeated its message that it could either cut or raise interest rates after a no-deal Brexit.

The bank said that productivity is recovering more slowly than it had thought and that the supply capacity of the economy had shrunk.

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