UK, EU Leave Interest Rates Unchanged

17 September, 2018, 11:58 | Author: Eric Barnett
  • Bank of England Governor Mark Carney speaks during a media conference to present the central bank's quarterly Inflation Report in London. Carney has agreed to extend his period as governor by six

As Prime Minister Theresa May tries to clinch a deal with Brussels, she is facing rebels in her Conservative Party who say they will vote down any agreement that fails to deliver a sharp break with the EU.

The EU, as a whole, remains Britain's biggest export partner and the British economy relies heavily on money and workers from the bloc.

The Governor of the Bank of England, Mark Carney, speaks to the Scottish Economics Forum, via a live feed, in central London, Britain March 2, 2018. "By identifying the risks and coming forward with solutions, the Bank is working hard every day to get our financial system in shape for Brexit, whatever form it takes". This included a 33 per cent decline in house prices, relative to otherwise, over three years.

Carney is due to speak in Dublin at 1000GMT.

In a speech in Ireland, he said Brexit is the "most significant" influence on the UK's economic outlook and that the Bank's job is to "plan for the worst".

One observer said: "Carney was very spicy".


Carney, whose term of office was this week extended until the end of January 2020 to deal with Brexit disruption, told ministers a chaotic exit would lead to a plunge in sterling that would drive up inflation and interest rates, The Times said.

British economic growth has slowed since June 2016's Brexit vote, though that has not stopped the BoE raising interest rates twice in just over a year, as it has judged longer-run prospects for non-inflationary growth had weakened. Yet how likely is the worst-case scenario?

It also modelled the impact of a rise in interest rates to 4 per cent. Exporters surveyed for the BoE saw a 40 percent chance that Brexit would hurt their sales.

Looking even further ahead the Euro is likely to face some volatility in the coming weeks as European Union and United Kingdom negotiators attempt to finally hammer a Brexit deal, with the uncertainty of the process likely to increased liquidity in the single currency moving forward.

Carney did not address this prospect directly in his speech at Ireland's central bank, though these projections are similar to scenarios the BoE told banks a year ago to ensure they had guarded against.

Recommended:

  • Browns' Gordon (hamstring) out vs. Saints

    Browns' Gordon (hamstring) out vs. Saints

    The Saints cut their deficit to 12-10 when Brees and wide receiver Michael Thomas connected for a 2-yard touchdown with 8:41 left. The Browns led 12-3 heading into the fourth quarter, but blew a chance to extend their advantage early in the final quarter.
    United States  plant operators prepare for Hurricane Florence

    United States plant operators prepare for Hurricane Florence

    In a call with reporters on Wednesday, Duke officials said a decision on whether to close the Brunswick plant had not been made. Nuclear Energy Institute vice president of nuclear operations, told World Nuclear News in October 2016 after Matthew's impact.
    Unai Emery reveals all over relationship with Mesut Ozil

    Unai Emery reveals all over relationship with Mesut Ozil

    It was like that with me from the start. "I've been told so many times over the years that this is how Bergkamp played". Playing a top six side and losing 2-1, the other side having had the bulk of the possession and dominating the game.
  • Brett Kavanaugh: accuser of Trump's Supreme Court pick goes public

    Even after Feinstein sent the allegation to the FBI, Senate Democrats weren't littering the news with calls to denounce Kavanaugh. Ford contends that Kavanaugh and a friend , both of whom she described as "stumbling drunk", corralled her into a bedroom.
    Super Typhoon Mangkhut hits China; over 2.45 million people evacuated

    Super Typhoon Mangkhut hits China; over 2.45 million people evacuated

    Mangkhut has now reached mainland China, where China's Guangdong province has already evacuated 2.45 million people. After blowing past the Philippines , the typhoon lashed Hong Kong and other parts of southern China on Sunday.

    Saints rally to come back against Browns, win first game of 2018

    Gordon missed the majority of training camp, taking time to make a concerted effort to improve his mental and physical health. The Cleveland Browns , in perhaps the most post-1999 Browns result ever, tied with the Pittsburgh Steelers last Sunday.
  • Torres overcomes shaky start to share Evian lead

    Torres overcomes shaky start to share Evian lead

    The South Korean's two career LPGA wins are more than the other three combined, though Martin won the 2014 Women's British Open. The world No. 21 birdied her final two holes for a first-round 65 at a course where she feels "at home".
    Hurricane Florence floods parts of the Carolinas with pounding wind and rain

    Hurricane Florence floods parts of the Carolinas with pounding wind and rain

    The storm, which made landfall Friday morning as a Category 1, is expected to continue to soak the area throughout the weekend. About 20,000 people hunkered down in 157 schools, shelters and a coliseum in Winston-Salem.
    Juventus 2-1 Sassuolo: Cristiano Ronaldo scores first Serie A goals

    Juventus 2-1 Sassuolo: Cristiano Ronaldo scores first Serie A goals

    Senegalese striker Khouma Babacar headed in a late goal for Sassuolo who fell to their first defeat of the season. The victory was tarnished, however, by a lamentable spitting incident involving Douglas Costa .
  • Democrats call to delay Kavanaugh committee vote, after accuser comes forward

    Democrats call to delay Kavanaugh committee vote, after accuser comes forward

    From the moment Anthony Kennedy retired, Brett Kavanaugh's Supreme Court nomination appeared to be a foregone conclusion. She told the Post: "Now I feel like my civic responsibility is outweighing my anguish and terror about retaliation".
    Vikings vs. Packers: My stupid prediction

    Vikings vs. Packers: My stupid prediction

    According to referee Tony Corrente, the flag was thrown because Matthews "lifted him and drove him into the ground". That was negated by the roughing call, despite Matthews avoiding putting all of his weight on the quarterback.
    ‘Challenge accepted’: Cowboys’ Dak Prescott responds to Giants’ trash talk

    ‘Challenge accepted’: Cowboys’ Dak Prescott responds to Giants’ trash talk

    Now he's itching to torch his bitter division rival in the national spotlight and do his first end-zone celebration of 2018. Giants. "I know the Giants, I'm sure, are happy to have him, and he certainly will challenge opponents for years to come".


Popular

Iran to Store Its Oil in Fleet of Supertankers
While OPEC production has increased since then, Saudi Arabia has added less crude than it initially indicated. The sanctions would include targeting Iran's automotive sector, trade in gold, and other key metals.

Australia Warns Consumer to Cut Strawberries After Needles Found Inside Some Samples
It was found in a punnet of Mal's Black Label strawberries - which is based in Gingin, 70km north of Perth . Young advised residents that all strawberries, regardless of brand, should be cut before they're eaten.

Hong Kong hit by typhoon as 40 reported dead in Philippines
The massive storm left dozens dead from landslides and drownings as it sliced through the northern Philippines on Saturday. Pedestrains walk past broken branches at Nanshan District in Shenzhen, south China's Guangdong Province, Sept. 16, 2018.

John Kerry blasts Pres. Trump's withdrawal from Paris climate pact
His administration is also seeking to boost methane emissions and roll back California's strict vehicle emissions standards. The summit came with 2018 on pace to be the fourth hottest year on record globally.

Moon faces toughest challenge yet in 3rd summit with Kim
One diplomatic source said, "The government has not compensated businesses that struggled after USA sanctions against Iran". Ambassador to the United Nations Nikki Haley on Friday.

Woman accusing Brett Kavanaugh of sexual misconduct comes forward
From the moment Anthony Kennedy retired, Brett Kavanaugh's Supreme Court nomination appeared to be a foregone conclusion. Now he is being accused of sexual harassment by a former classmate he went to high school with in the early 1980s.

MA gas-blast: Residents allowed home after fires and explosions
The company a subsidiary of NiSource , a utility company that serves more than three million customers in seven states. The governor and Columbia Gas of MA president Steve Bryant have quibbled over the utility's level of preparedness.

'Historic storm' lashes Carolinas with heavy rain, floods
Virginia, in fact, has issued mandatory evacuations for coastal areas of the state. " Your time is running out ", he warned. Listen to local officials, and make sure you heed their advice.

As storm nears, FEMA chief says he will cooperate with separate probe
Also at issue is Long's use of staff drivers for some of those trips back and forth, and travel expenses those aides incurred. The IG began investigating his conduct after one of the vehicles got into an accident, an official told Politico .

Israeli Missiles Target Iran Arms Depot Near Damascus Airport
The Israeli military would not confirm the claim, saying it does not comment on foreign reports. No information about damage or casualties on the ground is available so far.