In just two hours, the Bank of England raised interest rates twice in a row, raising the benchmark interest rate from 10 percent to 15 percent, something that has never happened before in the UK's financial history. Compared to the terrifying market reaction that would have resulted from a single increase of 0.5 percent, the terrifying magnitude of raising interest rates by 5 percent in two hours is simply unimaginable.

First International Capital Investment Management, London.

Shen Jiannan took over the announcement just from the Bank of England from Qina Kanoski, and was silent for a long time.

Although he has long known that the United Kingdom will continue to play the interest rate card, the Bank of England can only play this card, and he knows which step the Bank of England will set its goal in the first step.

But...... What's the use?

The interest rate hike has been raised, which is theoretically the main logic of bullish pounds, but the current market price has proved that this logic cannot support the price of the pound, if this is a war, then this is simply a soldier with more soldiers, the weaker the more magnified.

Unfortunately, the battle of financial markets has already proven over the next 30 years to be World War III.

"Damn the British, isn't it good to lie down and get beaten, why raise interest rates. What a bastard. ”

Qina Kanovski scolded angrily.

She doesn't know much about the economy and monetary policy, but she can still figure out the basic logical relationship, and a 3% increase in the interest rate means that the annual deposit income will increase by 3%, which means that the amount of money that needs to be paid for the loan will also increase by 3%.

If it is explained by the relationship between supply and demand, it can be explained that the market supply of the pound is shrinking, but the demand is increasing.

Moreover, this is not a small change, it is simply inconceivable that the Bundesbank could attract a lot of capital inflows into Europe with a single increase in interest rates of 0.5 percent, and raise them by 5 percent in a row.

Yulia Sidorov's face is relatively better, after all, she studied politics and economics, and has an in-depth understanding of Shen Jiannan in many aspects and absorbed some essence, she is more three-dimensional than Qina Kanoski about the relationship between the market, economy and finance.

However, there is only a limit to what is good.

As the Bank of England's announcement of an interest rate hike was conveyed to global financial markets in various ways, the price of the pound has rebounded by 2.2 percent, and Capital One, as well as the positions of Qina and Geman, have retraced interest rates by hundreds of millions of dollars. And this is the beginning, a 5% interest rate differential will make a big difference in the supply and demand of the pound, and if the Bank of England borrows money from the IMF at this time to fight back, the situation will soon go in the direction of the bears.

"Shen. I am afraid that the next situation will turn out in our unfavorable direction, and we will need to reduce the size of our positions. ”

Unfavourable?

Shen Jiannan stretched out his arm and stopped two women with similar figures.

"My dear. It's just a game, there's no need to worry about it, you're so nervous, why don't we do something fun to relax?"

Yulia Sidorov and Kina Kanovsky couldn't help but roll their eyes, when was this, still hanging here.

"Shen. You have to pay attention to it, if the market goes in a direction that doesn't work against us, it's bad. ”

"I've said don't add such a big position, Shen, I beg you, get serious, I don't care how much money I can make, but I don't want you to be in danger. ”

One is full of solemnity, and the other is full of resentment.

Shen Jiannan shrugged his shoulders helplessly, when women are verbose, they seem to be like this, and they don't reason with people at all.

"Babies. Let me tell you a story. ”

“......”

"There were no donkeys in one of our places in China, and then an eventful fellow brought a donkey, but because of the rugged mountainous terrain, the donkey was of little use, so he put the donkey at the foot of the mountain and released it alive. ”

"Is it the Irish donkey?"

“......”

“......”

"It's a donkey, my dear, and when I'm done with the story, we'll talk about what kind of donkey it is. ”、

“......”

"A tiger happened to see a donkey, thinking that this tall guy must be very powerful, well, you have seen, the donkey is more than a meter tall, with a mouth and thighs, and looks very powerful. The tiger was a little frightened, and hid in the woods and secretly observed, but his stomach was really hungry, and then the tiger came out quietly and approached the donkey cautiously, not knowing the details of the donkey.

One day, the donkey barked.

Reckless, reckless!

The sound of the donkey's bark is peculiar and terrifying.

The big tiger was taken aback and ducked away, thinking that the donkey was going to bite it, and was very frightened.

But after repeated observations, the tiger found that the donkey did not have any special skills except for the barking of Huan, and became more and more familiar with the sound of the donkey.

Later, the tiger walked around the donkey, but did not dare to go up and attack the donkey. But the smell of the donkey's meat could already be smelled, so it tested the donkey's reaction, and then the donkey barked again.

Later, the tiger slowly approached the donkey, becoming more and more presumptuous, either touching it or leaning on it, constantly provoking it.

This made the donkey very angry, and he kicked the tiger with his hooves.

The tiger's reaction was so quick that not only did the donkey's hooves not kick it, but also made the tiger realize that the donkey's strength was poor and its speed was slow.

The tiger thought in his heart: "This thing's ability is nothing more than that!"

So the tiger swooped down, roared, and bit off the donkey's neck, and ate the donkey. ”

"Finished?"

"Uh-huh, don't you think the British are the donkeys? The market is right, if the British can use their strength to seriously hurt the bears when they raise interest rates for the first time in two hours, it means that the British are not a barking donkey.

But what do we see, the Bank of England is simply vulnerable, oh my God, they raised the interest rate to 12 percent, but the pound depreciated by 8 percent.

What does this mean?

It means that the British can only shout except for shouting, and they have no strength at all, they seem to be tall and have sharp teeth, but they have no offensive ability. ”

“......”

Shen ...... Let's work first, and we'll ...... later."

“.......”

"You brute donkey......"

“......”

Ding Ding Ding –

Suddenly, the phone rang, and the donkey ...... Belch...... Shen Jiannan had to stop and pick up the phone.

"Mr. Shen. I am the third brother's younger brother Donkey, just now, the third brother was taken to the West Kowloon Police Station, let me tell you when he goes. ”

"Hmm. I see, let Charlie Cao go and drag those guys first, and I'll solve it as soon as possible."

"Yes. ”