- Previously, the Bank of England has maintained its benchmark interest rate at a historical low of 0.1%.
- In August, the British economy grew by 2.1% in the second quarter.
- Jeff Bezos sold off $3 billion worth of Amazon stock.
The Bank of England has increased its bond purchases and expanded its target to £895 billion. The purpose is to promote loans and investment to stimulate economic activity. It is expected that the new round of lockdowns will hit the UK’s economic recovery process.
Previously, the Bank of England has maintained its benchmark interest rate at a historical low of 0.1%. In September, the Bank of England also revealed that they were exploring the possibility of lowering interest rates below zero if necessary.
“The effect of these policies depends on the state of the world that we are in, and we are obviously in a difficult period at the moment with a further downturn,” Bank of England Governor Andrew Bailey told CNBC’s Geoff Cutmore on Thursday.
“But that doesn’t mean that we should hold back from using all the tools we can, to do everything we can, to support the economy and frankly to support people’s livelihoods.”
The United Kingdom is now surrounded by many dark clouds. The number of coronavirus cases is rising, the country is locked down, the prospect of “Brexit” is still uncertain, and strong monetary and fiscal policies have become crucial.
British National Bureau of Statistics last month released data showing that in August, the British economy grew by 2.1% in the second quarter.
On Thursday, the Bank of England predicted that the UK’s GDP will shrink by 11% this year, which is worse than the previously expected contraction of 9.5%. However, the central bank also predicted that the British economy will usher in a rebound in 2021, with GDP growth of 7.25%, but lower than the 9% expected in August. By 2022, UK GDP is expected to grow by 6.25%.
The Bank of England currently expects the unemployment rate to reach a peak of 7.75% in the second quarter of 2021. The British government has also extended the vacation plan to support lower-level workers. The Confederation of British Industry (CBI) said that the Bank of England’s move will give many companies a shot in the heart, but it is not a panacea.
Bezos Reduces Holdings by More Than $3 Billion
Yesterday, large US technology stocks continued to skyrocket. As of closing, Apple profit rose to 3.55% to $119.03, the latest total market value of $2.02 trillion.
Amazon profit rose 2.49%, Netflix profit rose 3.38%, Google rose 0.95%, Facebook rose 2.54%, and Microsoft profit rose 3.19%.
Jeff Bezos sold off $3 billion worth of Amazon stock. The world’s richest man has recently profited from the huge rise in technology stocks. He did not explain the reason for the sale of stocks, but this is his regular move.
Billionaires with large assets usually diversify their investment portfolios so that they do not “put all their eggs in one basket.”
According to Open Insider’s compilation of Amazon’s regulatory documents, Bezos has sold more than $10 billion worth of Amazon stock this year. This is an increase from nearly $3 billion in 2019.
According to the Bloomberg Billionaires Index, Bezos is still the world’s richest man even if the stock market plummets. His net worth is $191 billion, an increase of $76 billion from the beginning of the year.