The Bank of England may well need to cut interest rates in the likely scenario t...
BARNSLEY, England - The Bank of England may well need to cut interest rates in the likely scenario that high levels of uncertainty over Brexit persist, BoE policymaker Michael Saunders said on Friday in the first clear signal that it is considering a cut.
But Saunders told local businesses in Barnsley, northern England that if Britain avoided a no-deal Brexit, “I think it is quite plausible that the next move in Bank Rate would be down rather than up.”fell by around half a cent against the dollar to a three-week low, and government bond yields GB10YT=RR broadly dropped around 4 basis points as investors priced in the increased chance of lower borrowing costs.
“In this case, it might well be appropriate to maintain a highly accommodative monetary policy stance for an extended period and perhaps to loosen policy at some stage, especially if global growth remains disappointing,” he said. “Even without a no-deal Brexit, a scenario of persistently high uncertainty is probably the most likely outcome. That would probably imply continued weakness in business confidence and investment, with softer job growth that drags on consumer spending,” he said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sterling slips after BOE policymaker says Brexit uncertainty could mean a rate cutSterling slipped below $1.23 against the dollar after a Bank of England policymaker said the next move for the central bank could be a rate cut.
Read more »
US economy grew at modest 2% rate in second quarterWASHINGTON (AP) — The U.S. economy grew at a modest 2% annual rate in the second quarter, a pace sharply lower than the 3%-plus growth rates seen over the past year. Many analysts believe growth...
Read more »
James Bullard says the Fed still has a 'little more to go' with rate cutsSt. Louis Fed President James Bullard told CNBC on Wednesday that he thinks the central bank should continue cutting interest rates.
Read more »
Suicide Rate Among Active U.S. Troops Climbs 13%The suicide rate among active-duty troops jumped in 2018, according to a Pentagon report, signaling that serving troops aren’t immune to rising suicide rates in the general population and among veterans.
Read more »
Mexico economy minister says rate cuts critical for reactivating growthMexican Economy Minister Graciela Marquez Colin said on Thursday that central ba...
Read more »