Carney – BoE Can’t Nullify Economic Hit From Brexit

Governor Mark Carney said on Thursday the Bank of England could not be expected to nullify the likely hit to the economy from Brexit, although it could influence how that hit is spread across Britain.Hosting an event celebrating the 20th anniversary of the BoE’s independence from government, Carney said Britain’s economic prosperity would hinge on the final arrangements for its divorce with the European Union, as well as the government’s fiscal policies.“Even though monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU, it can influence how this hit to incomes is distributed between job losses and price rises,” Carney said in the text of his speech.

Source: Carney – BoE can’t be expected to nullify Brexit hit to economy – Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.