Bank of England ups growth view, Brexit keeps rate rise on ice

Credit: Reuters - Business (Amazon FireT
Published on May 2, 2019 - Duration: 01:29s

Bank of England ups growth view, Brexit keeps rate rise on ice

Bank of England Governor Mark Carney said investors were underestimating how much the central bank could raise interest rates even as it kept borrowing costs on hold on Thursday due to Brexit uncertainty.

David Pollard reports.

Advertisement

Bank of England ups growth view, Brexit keeps rate rise on ice

(UPSOT) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "From a global perspective in recent months, global tensions have eased ...." Its benchmark rate left on hold at 0.75 per cent .... A Bank of England policy meeting that delivered 'no change' as expected did, however, deliver one surprise .... In a decidedly more hawkish tinge to its outlook.

(SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "There's insufficient hikes in the current market curve to be consistent with our remit.

To be absolutely clear, our remit is two per cent CPI inflation, as you know." UK GDP this year, the Bank says: now seen at 1.5 per cent, up from 1.2 forecast in February.

Inflation: set to rise above the remit target over its forecast period.

(SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "There is steadily building domestic inflationary pressures over the course of it.

When it's 2.1 in year two, and 2.2 at year three and rising offstage, that's not target-consistent, or remit-consistent inflation." In other words, a message that markets could be underestimating how far and how fast the central bank could raise rates .... Even as it contends with Brexit uncertainty.

UK unemployment is at its lowest in 40 years - and likely to drop further, the Bank says.

Wages are rising at their fastest in the last decade.

A decade where the Bank has only hiked twice since the financial crisis .... But might now be closer to doing so again.

You are here

Recent related videos from verified sources

Pound headed for record 10th week of losses 01:23
Credit: Reuters Studio - Published 4 days ago 

Bank of England chops Q2 growth view as global and Brexit risks intensify 01:21
Credit: Reuters - Business (Amazon FireT - Published on June 20, 2019 

UK economy: inflation eases but Brexit gloom gathers 01:37
Credit: Reuters Studio - Published on June 19, 2019 

UK April pay data beats forecasts, employment growth slows 01:26
Credit: Reuters Studio - Published on June 11, 2019 

You might like