Carney Sees Tougher Time for Households Even If Brexit Smooth
- Bank cuts 2017 economic growth forecast, raises 2018, 2019
- Forbes remains sole dissenter in favor of tighter policy
The Bank of England kept the key interest rate at 0.25 percent and said that the U.K. may need tighter policy than the yield curve implies. BOE Governor Mark Carney gave his opening statement at a news conference in London following publication of the central bank’s quarterly inflation report. (Source: Bloomberg)
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Mark Carney warned that U.K. households will face a difficult year, underpinning the Bank of England’s decision to keep interest rates on hold. The pound fell.
While the BOE governor said policy makers have assumed the U.K.’s departure from the European Union will unfold smoothly, he noted the uncertainties surrounding that process and said real wage growth will remain weak for now.