Belfast Telegraph

Brexit has hit UK but Bank here to help, says Carney

By Kalyeena Makortoff

Bank of England governor Mark Carney has said the UK would be in a better position without Brexit, but vowed the Bank will do all it can to support the economy as it moves to life outside the EU.

Mr Carney said it was important for the public to understand that the Bank was ready to take action in order to curb inflation and support the wider financial system as Britain prepares for its divorce.

In an interview with ITV he said: "We have not done as well as we would have done, in the short-term, if the vote had gone the other way, and we've moved from being the strongest in the G7 to the slowest growing economy in the G7.

"That's part of this process of adjustment - it is a short-term issue.

"What's important that people recognise, whatever happens in the negotiations, is we'll make sure that inflation stays low, and, secondly, we'll make sure that the banks stay strong."

He said the Bank will be ready, regardless of what kind of deal is struck, "whether there's no deal or a very comprehensive deal".

Mr Carney's comments come just two weeks after the Bank's Monetary Policy Committee (MPC) voted 7-2 to increase interest rates from to 0.5%, reversing a cut to 0.25% in the wake of the Brexit vote and marking the Bank's first hike in a decade.

It served as an attempt to cool surging inflation which has been sent to five-year highs of 3%, driven by the post-referendum collapse of the pound.

The Bank is tasked with keeping the Consumer Price Index at 2% but had been tolerating higher inflation amid uncertainty caused by the Brexit vote to prevent shocks to the economy.

Mr Carney was speaking ahead of the Bank's Future Forum.

Belfast Telegraph

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.

Popular