Pre-Brexit 'sweet spot' may not last: Bank deputy
UK exporters are in a welcome "sweet spot" thanks to a boost from the Brexit-hit pound - but this is unlikely to last, according to a senior Bank of England policymaker.
Deputy governor Ben Broadbent said sterling's plunge since last June's vote to leave the EU may have hit households by fuelling inflation, but was providing a "boon" for many exporters.
In a speech in London he said exporter profits were being given a fillip after the price of their goods rocketed by 12% in sterling terms last year, while they are also still able to trade as before the Brexit vote. He described the UK as being in a "post-referendum" but "pre-Brexit" era, where the "costs and ease of exporting are unchanged but the returns to it significantly higher".
"The result is something of a sweet spot for exporters," he said.
Mr Broadbent said the fall in the pound gave British firms and overseas groups a "powerful incentive to invest in the UK's tradable sector", but this was being held back by fears over the outcome of Brexit.