Mark Carney: Bank of England is Well Prepared for Any Brexit Consequences
Governor of UK central bank Mark Carney stated, that the Bank of England and Britain's largest banks are well-prepared for a disorderly Brexit. "The Bank of England is well-prepared for whatever path the economy takes, including a wide range of potential Brexit outcomes," Carney said. "We have used our stress test to ensure that the largest UK banks can continue to meet the needs of UK households and businesses even through a disorderly Brexit, however unlikely that may be. Our job, after all, is not to hope for the best but to plan for the worst," he added.
British economic growth has slowed since Brexit vote in June 2016, though that has not stopped the Bank of England raising interest rates twice in just over a year. According to Mark Carney, uncertainty around Brexit had weighed on pay growth, although recent data still showed a pick-up.
Yesterday, the Bank of England kept interest rate unchanged at 0.75% level, as expected. Most economists do not expect the Bank of England to raise rates again until after Britain has left the EU. The BoE also raised the forecast for third-quarter growth to 0.5% from 0.4%, partly due to stronger consumer spending over an unusually warm summer.