Actions have consequences - An introduction for idiots.

**CryingSheep** · 2 August 2019, 17:35

Originally posted by clearedforlanding View Post

Exchange rates: Why is the pound getting weaker? - BBC News

I really think many idiots need to read this... isn't very hard t understand!

Just one thing... it was proven not long ago that the British economy is so fragile atm that even a base rate increase led to a further depreciation of the pound.

**clearedforlanding** · 2 August 2019, 20:40

Originally posted by CryingSheep View Post

it was proven not long ago that the British economy is so fragile atm that even a base rate increase led to a further depreciation of the pound.

I am not economically inclined. If you have a mo, would you be so kind as to explain why a base rate increase leads to depreciation of a currency?

Cheers,

CFL

**CryingSheep** · 3 August 2019, 07:53

Originally posted by clearedforlanding View Post

I am not economically inclined. If you have a mo, would you be so kind as to explain why a base rate increase leads to depreciation of a currency?

Cheers,

CFL

In theory it shouldn't, but in the case of the UK the market understood it was a desperate measure to stop the depreciation of the pound and not a sign of a healthy economy... This precipitated the depreciation further! It's a fact! Check the data after the last increase on the base rate by the BoE!

Actions have consequences - An introduction for idiots.