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The Bank of England has cut rates for the first time in over 7 years, slashed growth forecasts and launched a new monetary policy weapon in the battle to stop a U.K. post-Brexit economic slump…Mark Carney, the governor of the BOE, pledged that the bank would “stand ready to act in exceptional circumstances” as he made one of the most dramatic announcements of his tenure…with his actions the former Bank of Canada governor also made it more difficult for the Fed to raise rates this year…

The BOE made its biggest-ever quarterly downgrade of growth forecasts, reducing expectations for 2017 growth from 2.3% to 0.8%, citing “substantial uncertainty” after the referendum on the U.K.’s EU membership in June…

Carney also announced an “exceptional” stimulus package totalling 60 billion pounds ($223 billion U.S.) in purchases of government and corporate bonds, as well as other investment vehicles over the next year-and-a-half (quantitative easing) which is a substantially larger effort than anticipated…in addition to that, in a new scheme, the Bank of England plans to loan private banks as much as 100 billion pounds in a move to ensure lenders have enough liquidity to continue funding households and businesses…

“I cannot see any scenario where I would consider negative interest rates,” Carney told CNBC at a news conference after the announcement (other central bankers said the same thing not too long ago)…

With today’s move by the BOE, the Fed is left as the lone central bank that says it’s contemplating a tightening bias…but we all know the Fed is like the boy who cried wolf, the story we learned as kids about a bored boy tending sheep who attracted attention by warning of an approaching wolf so many times that when the animal finally attacked his flock, no one believed him…

The U.S. Labor Department will release the July jobs report tomorrow morning – even if that number exceeds expectations, Gold may head higher as it dismisses the Fed’s rhetoric on possibly hiking interest rates during the 2nd half of the year…

Crude Oil Update

U.S. Crude inventories unexpectedly rose by 1.4 million barrels in a report released yesterday, but that bearish news was offset by a significant drop in gasoline stocks…the U.S. remains flooded with Oil and getting to a supply-demand balance will take more time, but Crude may have found strong support around $40 a barrel…

Iraq’s Crude Oil production in July rose to the highest level since January to 4.63 million barrels-per-day compared with 4.6 million bpd in June, state-run Oil marketer SOMO said today…

In Today’s Morning Musings…

1. Clean Commodities (CLE, TSX-V) under accumulation…

2. Lithium X Energy (LIX, TSX-V) shows continued momentum…

3. Updates on Strategic Metals (SMD, TSX-V) and Golden Valley Mines (GZZ, TSX-V)…

Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, or login with your username and password.