Quite right. The spread is much the same whether interest rates are high or low. Fex is the biggest scandal. When I was at Lloyds Gatwick in the 60s spread on pound to us was around $2.78 to 2.82. These days apart from specialists at least 10%. I have raised it with Which several times. They ain't interested. On UTs they complain at 5%
It is a fallacy to think that higher interest rates are always a good thing for banks. If the economy is failing banks will fail...ask yourself what were interest rates at the time of the subprime crisis? We could well see a similar situation in London with people sitting on negative equity with rising interest rates?
Tightening monetary policy is a good idea when economies are stable and growing...as our recent PMI figures show ours ain't! There is good reason central bankers are cautious...pay heed!! A forced rise in interest rates would not be good for anyone.
Don't think you can say that interests rate will go up as a fact..sterling weakness might force Carneys hand but lack of investment and growth could push it the other way and lead to another belt of QE.
Even if interest rates do go up unlikely to be beneficial to the SP in the near term, sure margins will be better but on a weaker loan book with more defaults. Either way it looks precarious but hopefully It won't be an issue we have to deal with anyway.
a leave vote will only help lloy interest rate will go up to around 4,5 and remember lloy is only a domestic bank now back to were it was when we were getting 8% divs the eu has no bearing on lloys now at all or the rest of the world best bet on the market gla
I'm no political guru, more like just an avid followers of politics, but I genuinely can't see a Brexit on the cards. We're 49 days out and there's been a lot more political figures including ex prime ministers/chancellors, institutions, research groups/think tanks, business leaders that have openly backed the "Remain in the EU campaign" in relative comparison to the Brexit campaign. Surely, the momentum will start picking up when we hit the 3-4 week mark for the "Remain in the EU campaign".
With around 10-15% of the electorate, and the polls suggesting a tie between in and out, it would be my strong OPINION that the majority of this undecided vote would consist of younger votes, who in a bit generalisation would vote to remain in the EU.
I don't underestimate how close the vote may be, but I genuinely can't see a Brexit on the table. I see the vote being 56 in/44 out. Wish the bookies were offering better odds for the in vote, would love to have a punt.
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