<p>I agree that Money supply/Money stock is negatively correlated with short-term interest rates. </p>

<p>Since Great Britain has been using the Sterling before and after Brexit, there is no fundamental change in Monetary Policy caused by Brexit. Your (implied) assumption that Brexit causes a change in interest rates is therefore highly speculative.</p>

<p>Rather, the Bank of England's Monetary Policy Committee decides on interest rates based on (forecasted) growth and inflation rates, and a big number of other factors. </p>

<p>The economic performance (and therefore, interest rates) of the UK in the aftermath of Brexit will depend heavily on the negotiated deals between the EU and the UK.</p>

<p>If the UK economy indeed slows down as a response to Brexit, as many assume, the BoE will most likely keep the interest rates down. However, this is not at all guaranteed to happen. </p>

CC BY-SA 3.0
2016-07-10T14:52:08.900Z
2016-07-10T14:52:08.900Z
Chris tie
<p>I would like to know the impact of interest rates within Monetary Policies in view of Brexit.</p>

<p>An increase in the Monetary stock would lead to a decline (at least in the short-term) in nominal interest rates. Conversely, decrease in money stock can lead to short-term increases in interest rates. What I would like to know is whether there might be significant increases in interest rates during Brexit?</p>

CC BY-SA 3.0
2016-07-01T22:10:36.117Z
Could you please elaborate? Which interest rate, what kind of impact, why do you think Brexit has any role to play. Perhaps polish the phrasing a little as well.
Giskard
CC BY-SA 3.0
2016-07-02T07:51:02.077Z
Perhaps I should clarify my question by providing more background explanation:
BitsInForce
CC BY-SA 3.0
2016-07-02T08:02:30.487Z
An increase in the Monetary stock would lead to a decline  (at least in the nominal short-term) in short interest rates. Conversely, decreased in money stock can lead to short-term increases in interest rates. What I would like to know is whether there might be significant increases in interest rates during Brexit?
BitsInForce
CC BY-SA 3.0
2016-07-19T16:04:33.077Z
Why do you think Brexit would cause a decrease in money stock?
410 gone
<monetary-policy>
Monetary Policy adjustments as a result of Brexit
BitsInForce
# Monetary Policy adjustments as a result of Brexit

(Asked by: username_0 on 2016-07-01)

I would like to know the impact of interest rates within Monetary Policies in view of Brexit.

An increase in the Monetary stock would lead to a decline (at least in the short-term) in nominal interest rates. Conversely, decrease in money stock can lead to short-term increases in interest rates. What I would like to know is whether there might be significant increases in interest rates during Brexit?

**Tags:** monetary-policy
> **Comments:**
> **username_1**: Could you please elaborate? Which interest rate, what kind of impact, why do you think Brexit has any role to play. Perhaps polish the phrasing a little as well.  
> **username_0**: Perhaps I should clarify my question by providing more background explanation:  
> **username_0**: An increase in the Monetary stock would lead to a decline  (at least in the nominal short-term) in short interest rates. Conversely, decreased in money stock can lead to short-term increases in interest rates. What I would like to know is whether there might be significant increases in interest rates during Brexit?  
> **username_2**: Why do you think Brexit would cause a decrease in money stock?  

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## 1 answers

### Answer by username_3 on 2016-07-10. Score: 0

I agree that Money supply/Money stock is negatively correlated with short-term interest rates.

Since Great Britain has been using the Sterling before and after Brexit, there is no fundamental change in Monetary Policy caused by Brexit. Your (implied) assumption that Brexit causes a change in interest rates is therefore highly speculative.

Rather, the Bank of England's Monetary Policy Committee decides on interest rates based on (forecasted) growth and inflation rates, and a big number of other factors.

The economic performance (and therefore, interest rates) of the UK in the aftermath of Brexit will depend heavily on the negotiated deals between the EU and the UK.

If the UK economy indeed slows down as a response to Brexit, as many assume, the BoE will most likely keep the interest rates down. However, this is not at all guaranteed to happen.


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