The ripples from the EU Brexit vote in the UK continue to be felt as uncertainty pervades the whole issue.
Monetary policy tools are being deployed rapidly by UK government to help stave off any downturns prompted by the vote.
The latest move, was by the Bank Of England lowering the Bank Rate of Interest from 0.5% to 0.25%, a new historic low. The interest rate is basically the price of money. Sterling immediately plummeted on the foreign exchange markets, making some recovery soon after. With Sterling now at around £1.17 to the €1, that’s quite the drop from this time last year when it was around £1.40 to €1.
All eurozone importers into the UK will certainly be feeling the effects that this will have on the price of their goods!
And of course for the foreseeable short to medium term future, all that can be expected is more volatility until the full terms and conditions of the British exit are sorted.
