The pound has fallen to a new 31-year low against the dollar as the Bank of England announced new measures to ease lending to help the UK economy cope with the impact of the ‘Brexit’ vote. The pound fell 1.1% to $1.314, below the levels hit in the immediate aftermath of the UK’s vote to leave the European Union, as the Bank of England eased capital control rules on UK banks.
The Bank has scrapped the rule requiring that UK lenders hold 0.5% of their UK exposure as a ‘countercyclical capital buffer’ potentially freeing up £150 billion of lending.
In its Financial Stability Report, the Bank said it was acting after signs that the risks posed by the ‘Brexit’ vote were ‘starting to crystallise’.
[Source: New Model Adviser - Daniel Grote - July 5, 2016] Read the entrie article >>