From Justin Spittler, Editor, Casey Daily Dispatch:
One of the world’s biggest central banks just swung its “sledgehammer.”
On Thursday, the Bank of England (BoE) launched its biggest stimulus package since the 2008–2009 financial crisis.
It cut its key interest rate to a record low. It started “printing” money again. And it announced a new “funding scheme.”
The BoE launched this massive easy money program to soften the blow of the “Brexit.” As you probably heard, Britain voted to leave the European Union (EU) on June 23. The historic event rattled Britain’s financial system.
The FTSE 100, Britain’s version of the S&P 500, fell 3.1% on the news. It was the worst day for British stocks since 2008. The pound sterling, Britain’s currency, plunged 8%, its biggest one-day drop on record.
In the aftermath, many analysts predicted Britain’s economy would take a serious hit. Some even warned of a recession. The