UK crisis destabilizes markets and fuels uncertainty

UK crisis destabilizes markets and fuels uncertainty

You markets in the world opened this Thursday (29) in a fall due to the collapse of British assets, with new episodes of the UK . The day before, the bank of england announced a £5 billion daily bond purchase program.

The UK Central Bank is expected to buy bonds daily until October 14, which would result in an amount of 61 billion bonds. The intervention takes place amid the crisis that began after the government revealed a tax cut package – the biggest in half a century in the country – through an increase in indebtedness, which generated mistrust and influenced the fall in assets due to the perception of risk.

Although the pound and the market were helped the day before by the release of the plan for the British crisis, the currency and assets fell again amid uncertainty and risk aversion. According to analysts, the perception is that the Bank of England managed to stop the bleeding on time, but still has not managed to get around the root of the problem.

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*Posted by Fabricio Julião

Source: CNN Brasil