Monday, 11th July 2016
Good morning, friends,
In this issue of Money Truths….
- No universal meaning….
- A cut in the base rate….
- Reaching for the defibrillator….
- Life-saving surgery….
No universal meaning….
Like politics, the financial world is largely driven by events.
Things happen. Every day. That much you can rely on….
But, in the financial world, events have no universal meaning. They don’t mean the same thing for everybody.
A single event can have a different meaning, create a different effect and produce a different consequence for different individuals, businesses, groups or interests. Each can see and experience the same event very differently.
That’s one aspect of the financial world that makes it such an interesting and compelling environment – and one so difficult to fathom. It is a mass of complexities and contradictions….
Take what might happen later this week, for example. It means different things to different groups of people….
A cut in the base rate….
Last week the Bank of England governor, Mark Carney, said that there was a prospect of‘material slowing’ in the British economy. In other words, a sharp slowdown in the rate of economic growth….
Economists took that warning as a strong hint that interest rates will be cut this week to a new low of 0.25%.… Click here to read more