Could UK see negative rates within the year following Brexit vote?

50% chance of cut next month

Laura Dew
clock • 3 min read

Markets are pricing in a 15% chance of negative interest rates within the next year, following the UK's decision to leave the European Union.

In the near term, they are predicting a 50% chance of an interest rate cut in July, a 65% chance of a reduction in August from the current level of 0.5%, and an 80% chance of a fall by the end of the year, according to Hargreaves Lansdown.  There is also speculation the Bank of England may re-start quantitative easing, as it did during the financial crisis. Speaking on Friday following news of the referendum result, governor Mark Carney (pictured) said the Bank of England "will not hesitate" to take additional measures if necessary. He said the Bank had an extra £250bn in funds it cou...

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