Sun. Oct 25th, 2020

Bank of England in surprise split over interest rates – business live

The BoE has cut growth forecasts, as it sets interest rates for the last time before the general election

Earlier:

1.52pm GMT

Economist Sam Tombs of Pantheon thinks Mark Carney should say what he really thinks about the UK’s new Brexit agreement:

Why is Carney, at the end of his term, being so diplomatic about the impact of the new Brexit deal? Economists are pretty united that Boris’ deal is negative for GDP, relative to May’s. He put the boot in after the ref., highlighting economy’s underperformance. Why so timid now?

1.39pm GMT

Here’s our economics correspondent Richard Partington on Mark Carney’s comments about Brexit:

Mark Carney says that “Brexit uncertainties are dominating” for the slowdown in UK growth (though global economy issues have also had an impact)

Carney gives Javid some powerful support: He says the deal is expected to remove some of the uncertainty facing businesses and households, and that GDP growth will pick up during 2020 as a consequence. A Brexit Dividend?

Carney says the boost to growth was based on an assumption that the move to a new UK-EU trading relationship would be smooth.

Risks to this forecast are “skewed to the downside”

“Events will see whether that transpires,” he adds.

Continue reading…The BoE has cut growth forecasts, as it sets interest rates for the last time before the general electionBoE governor Mark Carney is holding a press conference nowBoE votes 7-2 to leave rates on holdTwo MPC members vote for a cutBoE cuts growth forecastsEarlier:EC lowers growth forecasts as headwinds riseChina and US ‘agree to roll back tariffs 1.52pm GMTEconomist Sam Tombs of Pantheon thinks Mark Carney should say what he really thinks about the UK’s new Brexit agreement:Why is Carney, at the end of his term, being so diplomatic about the impact of the new Brexit deal? Economists are pretty united that Boris’ deal is negative for GDP, relative to May’s. He put the boot in after the ref., highlighting economy’s underperformance. Why so timid now? 1.39pm GMTHere’s our economics correspondent Richard Partington on Mark Carney’s comments about Brexit:Mark Carney says that “Brexit uncertainties are dominating” for the slowdown in UK growth (though global economy issues have also had an impact)Carney gives Javid some powerful support: He says the deal is expected to remove some of the uncertainty facing businesses and households, and that GDP growth will pick up during 2020 as a consequence. A Brexit Dividend?Carney says the boost to growth was based on an assumption that the move to a new UK-EU trading relationship would be smooth. Risks to this forecast are “skewed to the downside””Events will see whether that transpires,” he adds. Continue reading…

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