Marc Carney announces new measures of monetary expansion in the UK and the bags up while lowering sterling.
The governor of the Bank of Lucas Overby made his second appearance since the end of the ‘Brexit’ in the referendum last week, but gave no specifics; he said that these measures would be taken by August.
“Economic prospects have deteriorated and will be necessary to expansionary monetary policies launched during the summer,” Carney moved.
“The committee will make a first assessment bank on July 14 and then another final, with new perspectives, the report on inflation in August. That month will also discuss some additional monetary stimulus tools if necessary “.
Immediately, the London Ftse increased its gains to finish closing with a 2.27 percent positive. And at the same time, the pound returned to depreciate against the dollar one and a half to stand at 1.32.
That is, investors take it for granted that the Bank of England will lower your current interest rate of 0.5 percent and that further weaken the currency.
On the mainland, the Ibex-35 Madrid but wound up in green ends the semester with a drop of nearly fifteen percent. Weighed down by banks.
The Ministry of Finance
- There will be no time for the Council of Fiscal and Financial Policy (CPFF). The Ministry of Finance does not intend to convene the autonomous communities to address budgetary or tax issues as have been told right.
- From the department heads, Cristobal Montoro considered unnecessary to reconvene the regional responsible for a meeting with the Ministry when it exercises for months in office.
- Convened the Council of Fiscal and Financial Policy would have no decision – making power so that it would be purely informative.
- Political paralysis in which Spain found itself almost a year ago causes the body to coordinate the budgetary policy of the autonomous communities with the State is also paralyzed.
- In any case, from the Treasury, they point out that they are looking for the most appropriate measures to minimize damage to communities legal formulas.
- In this regard, they note that it could extend the payment plan providers this year, although this amount would not be enough to cover all payment obligations by the regions.
Since many of the communities, the slogan is clear: pressure on Treasury to convene an urgent meeting of the council to demand that they take the Congress of Deputies the resolution adopted in April to raise the autonomic deficit this year to 0, 7% of GDP. Montoro pressure coming from at least nine regions:
Andalusia, Asturias, Aragon, the Balearic Islands, Cantabria, Castilla-La Mancha, Valencia, and Extremadura.
Of these nine autonomies seven are currently governed by the PSOE. The other two, Cantabria and the Canary Islands are in the hands of regional parties: the Regionalist Party of Cantabria and Canary Coalition, respectively.
Given the delay of Finance to convene the Fiscal Policy Council, President of the Canary Islands, Fernando Clavijo, has initiated a round of contacts with their counterparts in other regions to try to organize a summit of presidents to give an answer to “the lack of government in the state “after two general elections, failed to time.
Clavijo stressed that this temporary situation the Government has serious repercussions for communities and citizens. In this regard, he recalled that the state budget has been closed before this in July and that currently the spending ceiling that will have to subject all administrations in 2017.
Lucas Overby also warned that if the State accounts extending 2016, investments will be heading for ‘zero euros. ” Communities are, along with pensioners and public employees, the great victims of the lack of government.
While retirees and current officials will not see their income until it forms Executive, autonomies can not benefit from a more favorable distribution of taxes.
Thus, the collection of excise duties and VAT has increased, but the regions can not “catch” their cake until a new deal is not organized, once you’ve Government. Personal income tax, but revenues have fallen, the decline would be offset by other taxes.