Belfast Telegraph

Referendum hit not as bad as expected: MPC member

By Kalyeena Makortoff

A key Bank of England policymaker has said that further economic stimulus is unnecessary as the effects of Brexit have been "less stormy" than expected.

In a speech delivered at Imperial College London yesterday, external monetary policy committee (MPC) member Kristin Forbes defended the bank's post-referendum easing measures and stressed that there was no need for further action.

"The initial effect on the UK economy of the referendum has been less stormy than many expected," Ms Forbes said.

Property market weakness and evidence of delayed corporate investments have been partly offset by "strong consumer spending" and a potential up-tick in net exports, she claimed

"The economy is experiencing some chop, but no tsunami," Ms Forbes added. "Looking forward, I am not convinced that additional easing will be necessary to support the economy."

Ms Forbes is one of nine voting members of the MPC and is widely seen as one of the more hawkish rate-setters. She voted in favour of cutting the bank's key interest to a record low of 0.25% in August, and introducing the new Term Funding Scheme in a bid to cut borrowing costs.

But she stopped short of supporting corporate bond purchases and extending the Bank's quantitative easing programme.

Meanwhile, the Organisation for Economic Co-operation and Development raised its forecast for the UK economy after warning it would be hit by a shock following the EU vote.

Belfast Telegraph