Bank of England Interest Rate cut Highlights the Need for an Active Investment Portfolio

JP Buntinx
March 11, 2020

Global consequences of the novel coronavirus are slowly becoming apparent. Various banks mull whether to slash current interest rates, similar to what the Bank of England announced earlier this week.

Bank of England Cuts Rates

During times of financial uncertainty, it becomes increasingly difficult to introduce proper countermeasures. As no one knows how long the novel coronavirus will remain problematic, banks have to introduce emergency solutions. A recent decision by the Bank of England won’t sit well with a lot of people, for fairly obvious reasons.

This week, the Bank of England decided to cut its current interest rates. Not entirely surprising, as interest rates have been a pressing problem in the financial industry for over a year. Some banks still provide positive yields, whereas the ECB is maintaining its negative rates. 

By reducing interest rates from 0.75% to 0.25%, an interesting step is taken. This 66% reduction is very steep, and was introduced seemingly overnight. According to bank officials, it is necessary to go down this route to respond to the economic shock of the novel coronavirus. It will also bolster cash flows of businesses and households. 

It’s not all Doom and Gloom

For the average saver, this interest rate cut is problematic. Money stored in a savings account has not yielded much interest for many years now. As more time progresses, that situation only seems to grow worse. There are many other alternative solutions to make money, such as the ones offered here on Bar9.

Despite the doom and gloom, there may be some benefits due to the rate cut as well. Specific types of mortgages – tracker mortgages, in this regard – will get cheaper. Their interest rate to be paid will drop, for the foreseeable future. Once things calm down and the Bank of England reverses its decision, the payments will change accordingly.

As officials state, these measures improve the availability of finance. That aspect is crucial, especially for businesses. Smaller stored owners will face the biggest problems during this novel coronavirus outbreak.

Borrowing money becomes cheaper, and more money will begin flowing through the economy in general. That means now is a great time to begin investing in assets that can withstand major financial uncertainty, such as gold and other metals.

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Silver Bug Profile: James Turk

Ever since retiring from his last position in 1987, James has been able to keep himself busy. Not only has he worked on The Freemarket Gold & Money Report, but also wrote several books.

Gold Bug Profile: Howard S. Katz

Even though Katz is rightfully called an early gold bug, it is evident that he was all too aware of how the markets evolved at any given moment.

Gold and Silver Futures Turn Bearish as International Demand Weakens

Some analysts expect a new all-time high for gold later this year, although there will be some volatility to contend with before that happens.

Gold, Silver, and Crypto Markets Seem Poised for a Massive Bounce

For companies that are publicly traded – and often work over the weekend – having 24/7 exposure across the markets would be ideal.

Welcome To The New Bar9 Rebranding

To all Bar9 customers, I'm proud to announce the rebranding of Bar nine and a whole new informative front end. As we move into 2020 Bar9's mission is to make it easier for anyone to move in and out of physical hard assets and become a little more bank independent. The...

Fortuna Silver Mines Notes Steep Silver and Gold Production Decrease in Q1 2020

More specifically, the production of both lead and zinc has increased by 8% and 5% respectively. This is a somewhat unexpected “bonus” for this mining operation.

Gold Bug Profile: Eric Sprott

It is also worth noting that Eric Sprott sold his first company – known as Sprott Securities – back in 2011. Interestingly enough, the company was purchased by other staff members.

Gold Bug Profile: Peter Thiel

Since his tenure at PayPal, Peter Thiel has made a lot of headlines due to his investments. More specifically, he is an active VC for tech companies in their early stage of development.

Gold and Silver Bounce Back as Stock Markets Continue to Struggle

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change.

Gold Bug Profile: Ben Davies

Ben Davies is the co-founder and CEO of Hinde Capital. Founding this company came after building up over a dozen years of experience in financial and commodity markets.

Silver Bug Profile: Juerg Kiener

These days, Kiener is primarily involved in management resources mandates for SAC, with a strong focus on institutional clients and wealthy individuals.

Gold Bug Profile: Thomas Kaplan

The first link with precious metals became apparent in 1993. At that time, Kaplan founded Apex Silver Mines, taking up the role of chairman and chief executive officer.

Silver Bug Profile: Stewart Thomson

Many people keep an eye on the precious metals markets, as those segments have tremendous profit potential. Stewart Thomson can be classified as a silver bug, primarily because he expects things to head in a very promising direction.  Who is Stewart Thomson?...

Gold Bug Profile: Alan Greenspan

There are many pathways in life which can influence the future of one’s existence. For Alan Greenspan, one pathway of particular influence is called Objectivism.

The Silent Thief: How to Protect Savings from Inflation

How can you protect your savings from inflation? Horror stories of the prices of bread and milk spinning out of control have fixed the concept of inflation firmly in the public imagination. These hark back to the worst cases, like in the Weimar Republic where shoppers...

Silver Bug Profile: Ralph Aldis

Ralph Aldis has also been named twice as a US Metals and Mining “TopGun”. This title is “awarded” by Brendan Wood International every single year. He is also the Best Americas Based Fund manager in 2016, awarded by Mining Journal.

Silver Bug Profile: Peter Leeds

Similar to his opinion on gold, Leeds is very hopeful when it comes to silver. In fact, he considers it to be the top investment for 2020 and possibly beyond,

The Silverites: Advocating for Silver to Become the Unit of Money in the US

The best way to get something done in the United States is by leveraging one’s political position. The Silverites certainly explored that angle quite well.

Coronavirus-Infused Market Volatility is Bound to hit Australia and New Zealand

It now seems that Asian markets are recovering a bit. It is still too early to determine if the coronavirus crisis is under control in that part of the world.

Indian Officials Confiscate 9.3kg of Gold From Smugglers

What is rather interesting is how all of these bars have forged foreign markings. The objective of the individuals was to sell it in Mangaluru and districts of North Karnataka

Translate Blog Post

Article Categories

Blog Stats

  • 118,169 hits

Follow the CEO on Twitter

%d bloggers like this: