Follow Us

Follow us on Twitter  Follow us on LinkedIn

14 November 2017

Bloomberg: Carney says Brexit implications for interest rates are ambiguous

Default: Change to:

The Bank of England may have to be ready to move either direction on monetary policy come March 2019, when the UK is due to formally leave the European Union.

[... ] How exit negotiations proceed and the extent of any transition -- two big unknowns at this point -- will impact the pound and bonds, supply and demand and, of course, inflation, Governor Mark Carney said in Frankfurt on Tuesday.

Echoing his remarks from the BOE’s Nov. 2 policy press conference, he said the U.K. is in “exceptional circumstances” because of Brexit and real incomes have taken a hit. But the central bank can only support the economy so much in light of the inflation overshoot, hence the interest-rate increase this month. 
He also said future moves aren’t set in stone, and it all hangs on how the Brexit talks -- already up against a December deadline -- progress. [...]
Carney said he’s very much in favor of a Brexit transition deal to allow a smooth path for businesses and consumers. It would make his job easier, too, he said half-jokingly. [...]

© Bloomberg

< Next Previous >
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information

Add new comment