Later today the Bank of England governor will aim to reassure nervous investors following the EU referendum. Markets remained calm ahead of Mark Carney’s speech although UK shares dipped slightly while the pound remained steady, as the market recovery seen over the past couple of days stalled.
According to the BBC, the FTSE 100 share index was down 0.3 per cent at 6,339.15 in early trade. But it remains near the level it closed at last Thursday before the referendum result was known. The pound was little changed against both the dollar and euro, although it remains well below levels reached before the referendum. Meanwhile, Nandini Ramarkrishnan, global market strategist at JP Morgan Asset Management, told BBC 5 live‘s Wake Up To Money that it was ‘a pretty momentous event’ when earlier this week the yield on UK 10-year gilts (government debt over 10 years) dropped below 1 per cent. In the near term yields could drop even further as people buy bonds but, in the longer term, if the UK’s growth weakens and inflation returns then the demand for bonds could ebb, she said.
Get Britain's best politics newsletters
Register to get The Spectator's insight and opinion straight to your inbox. You can then read two free articles each week.
Already a subscriber? Log in
Comments
Join the debate for just £1 a month
Be part of the conversation with other Spectator readers by getting your first three months for £3.
UNLOCK ACCESS Just £1 a monthAlready a subscriber? Log in