Bank of England sees weakest outlook since 2009 on Brexit and global slowdown
While other central banks have said they will delay raising borrowing costs, the BoE says it will depend on how Britain exits the EU
London — Britain faces its weakest economic growth in 10 years in 2019, the Bank of England (BoE) said, blaming mounting Brexit uncertainty and the global slowdown, but it stuck to its message that interest rates will rise if a Brexit deal is done. While other central banks have said they will hold off from raising borrowing costs, the BoE restated that gradual and limited rate rises lie ahead for Britain, as long as a no-deal Brexit in just 50 days is averted. “The fog of Brexit is causing short-term volatility in the economic data and, more fundamentally, it is creating a series of tensions in the economy, tensions for business,” BoE governor Mark Carney said in a speech after the bank’s policymakers voted unanimously to keep rates at 0.75% as expected. “Although many companies are stepping up their contingency planning, the economy as a whole is still not yet prepared for a no-deal, no-transition exit.” It is possible that Brexit might not be fully “tied up in a nice package” by ...
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