Due to the fear of the fear of the global trade war, the market has improved the prospect of BBC’s up to four times the basic interest rate this year.
US President Donald Trump said he would impose a 25 % tariff on Mexico, Canada 25 %, and levied 10 % of China on weekends. Although these sanctions begin to have uncertainty.
The newly elected president also said that due to unequal trade balance, Britain and the European Union may also impose tariffs.
This has caused the stock market to emerge globally, fearing that this will increase the price of consumer goods and slow up international trade.
Before the transaction started this morning, Jim Reid, a strategicist of Deutsche Bank, said: “As the world attempts to reach a” shock “tariff announcement with Mr. Trump’s” shock “tariff announcement on Saturday night, Available on Monday.
“I was shocked, but everything Trump did was to continue It is what he will do since November.
“Nevertheless, the market refused to take this threat seriously and completely underestimated the risk. Therefore, this shocked the weekend news.”
In London, FTSE 100 decreased by 1.25 %, a decrease of 1.05 %, or 90.85 points, and 8,583.11 in the afternoon.
Because of the concerns of global trade conflicts, this increased several times to reduce interest rates several times.
Now, by the end of this year, the currency market is priced at 80 basis points.
This means that three 0.25 % cutting volume is fully priced, one -quarter of the possibility.
This is increased compared to the 75 basis points expected last Friday.
British anemia economy has made most traders firmly bet on the interest rate makers of Bank of England’s monetary policy committee without choice, and can only reduce basic interest rates from 4.75 % on Thursday.
Both Goldman Sachs and Deutsche Bank predict that the committee will vote at 8-1 to increase the tax rate by 0.25 % to 4.50 %.
The current British economic data is frustrated. After shrinkage in October and September, the economy was driven by November, and the shares in November increased by 0.1 %.
The inflation rate is 2.5 %, which is higher than the central bank’s 2 % target.
Last month, Charlie Nunn, CEO of Llayds Banking Group, said he would reduce three basic interest rates this year because he described Britain as “elasticity”.
Goldman Sachs has long predicted that Bank of England will be tripled to maintain British economic development.
The consensus point at the beginning of this year is that the Central Bank of the United Kingdom will reduce the basic interest rates twice this year.
