Mark Carney says Bank actions reduced impact of Brexit

Date:

9/7/2016

Time:

11:38:39

Source:

BBC News

Content:

Bank of England Governor Mark Carney has defended his action to mitigate the impact of Brexit. He said the Bank took "timely, comprehensive and concrete" action, which acted to "support, cushion and help the economy to adjust". Last months rate cut to an historic low of 0.25% helped support house prices and the wider economy, he added. He added he was "absolutely serene" about the Banks preparations for the impact from the Brexit vote. Mr Carney was being questioned by MPs on the Treasury Select Committee about how the Bank handled the referendum outcome and its decision to cut interest rates to a record low. The Bank was criticised by Brexit supporters for saying the economy would be hit from a vote to leave the EU. But Mr Carney said the Banks decisions had so far been "validated". The "extraordinary preparations" made by the Bank "cushioned" the economy and will help the UK "make a success of Brexit", he told MPs on the Treasury Select Committee. He said the Banks actions were made in an effort "to help make the leaving of the EU a success as quickly as possible". "This financial system, under the oversight of the Bank of England, sailed through what was a surprise to the vast majority of financial market participants," Mr Carney said. MPs questioned whether the Bank was too aggressive in supporting the economy after the vote. The UKs services, manufacturing and construction industries have all showed signs of recovery in August after taking a hit in July. However, Mr Carney said he was "absolutely comfortable" with the Banks decision to cut interest rates to 0.25% and pump billions of pounds into the economy. He added that it is "welcome there is a rebound" in the economy. Mr Carney said there has been quite a considerable improvement in mortgage borrowing costs "and we are seeing pass through of our actions". When Labour MP Rachel Reeves raised concerns that the majority of lenders had yet to pass on the full cut in rates, Mr Carney said the Bank expected "virtually" all the rate cut to be passed on to borrowers in the next few months.

Orignial Link :

http://www.bbc.com/news/business-37299838

crawlTime:

9/12/2016 2:59:01 PM