BoE likely to intervene more in UK economy after a no-deal Brexit, says Carney
Bank governor warns that options available to the British central bank would be limited
London — Bank of England (BoE) governor Mark Carney says the bank would probably give more support to the economy if it suffers the shock of a no-deal Brexit, but that the options available to the British central bank would be limited. The BoE has previously stressed that it would not have an automatic interest rate response to Britain leaving the EU without a transition deal, which is due to happen in just over a month’s time. But Carney saysthe chances of the BoE loosening or tightening monetary policy are not equal. “Given the exceptional circumstance associated with Brexit, I would expect the committee to provide whatever monetary support it can,” he said in an annual report to MPs. “But there are clearly limits to its ability to do so.” The BoE has raised rates only twice since the global financial crisis, due to a slow recovery and more recent Brexit uncertainty hanging over the economy, and its benchmark lending rate stands at 0.75% , close to the historic low of 0.25%. Prime...
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