LONDON (Reuters) – Two Bank of England officials unexpectedly voted to lower interest rates due to signs of a deeper economic slowdown, and others said they would consider a cut if global and Brexit headwinds did not lift.
FILE PHOTO: Mark Carney the Governor of the Bank of England speaks at the bank’s quarterly Inflation Report Press Conference in London, Britain August 1, 2019. Chris J Ratcliffe/Pool via REUTERS/File Photo
Below are comments from Mark Carney at a news conference after the BoE announcement:
ON THE GLOBAL ECONOMY
“It’s important to step back sometimes and not lose sight of the big picture. Globally that big picture has darkened.”
ON A BREXIT DEAL
“Now it’s become possible that the picture in the UK could change, with the recent UK-EU withdrawal agreement creating the prospects for a pick-up in UK growth.
“The pace of that recovery will depend critically on the extent to which uncertainty over the future UK-EU trading relationship actually dissipates, and, to a much lesser degree, by how much the global economy actually picks up.
“Both are assumed in the MPC’s latest projections, neither is assured.”
ON BREXIT UNCERTAINTIES
“As has been the case for some time Brexit uncertainties are dominating, weighing particularly hard on business investment, which unusually during an expansion has contracted in five of the past six quarters and is currently estimated to be just half a percent higher than at the time of the referendum.”
ON GOVERNORSHIP TRANSITION