Things are only getting worse for the United Kingdom, by the look of things. As many people expect, the Bank of England decided to cut interest rates in half, with a possibility or lowering them further if needed. Additionally, the Pound Sterling took another beating, and the economy in the UK is quickly deteriorating. If there were ever a time for plan Bitcoin in the UK, this would be it.
The UK Economy Is Spiraling Out of Control
Contrary to earlier messages by the European Central Bank, the UK economy has far from stabilized. In fact, new research indicates there are several signs of deterioration, and things could spiral out of control very quickly at this rate. The Bank of England lowered interest rates from 0.5% to 0.25% earlier today and has already hinted at further lowering these rates if need be
Up until yesterday, the Bank of England had predicted a growth of 2.3% for the year 2017. However, they had to lower those expectations to 0.8% already, and the year 2017 has not even begun. Moreover, the interest rate cut was approved unanimously, whereas 2-in-3 members approved the quantitative easing countermeasures. So far, there is zero evidence of quantitative easing ever solving financial problems, as it only delays the inevitable.
It is worrisome the Bank of England is not optimistic about the future of the economy. Just a few weeks ago, things seemed to be ‘under control”, but it looks like they cried victory far too soon. This negative news has caused the Pound Sterling to further weaken on the FX markets,
Fighting off an impending recession is of the utmost importance for the United Kingdom right now. It is much easier to say so than come up with a solution, though. Experts predicted the Brexit would have this negative effect at some point along the way, and it looks like it is now only a matter of “when,” rather than “if.”
Consumers and investors who are looking for ways to fight off the recession and preserve their value will flock towards alternative investment options. A new surge in precious metals, and perhaps even Bitcoin, is not unlikely. The traditional financial ecosystem holds far too many questions and not enough answers for a recovery.
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