Choas in Business market
The time of year has come when the every finical market is gripped with chaos and uncertainty. The very reason for this being that the year of Finance is at closing heals and all the unfinished deals and outstanding loans and mortgages have to be settled before 31st of March. The year ending always brings with it a lot a undesirable news and speculation and most of them are just rumors like now the experts claim to have a opinion that every standard bank including the Royal bank of England is about slash the prices and interest rates once the policy committee sits for a meeting next week.
This mere statement has made waves and tempest in stocks markets and the word goes that since the Mortgages market are first hit by this rate slash many more shall be followed. The MPC, though forecasts that slower GDP growth and low interest rate shall “necessitates aggressive policy easing to prevent a future undershoot in CPI“. Withstanding the above said statement with all due respect it so happened that Last month the committee voted eight to one in favor of a cut to interest rates to 5.25 per cent and the one member of the committee who voted against the cut wanted a larger cut rather than 0.25 per cent.
The scenario is further confused by the upcoming election and the uncertainty with the idea weather the upcoming government shall impose and follow the newly laid down rules and rates or as usual they would be revised as per the advice of the new formed finance and respective committee. Only time shall decided the truth till then I advice all investor to stay clam and do not indulge in either heavy buying or selling, playing safe will be the key for now.
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