Governor Mark Carney said that the Bank of England is poised to counter any shock the economy faces from Brexit.
He added that the Bank expects UK growth to fall below potential in the last three months of 2018, partly due to fluctuations in the data amid Brexit uncertainty.
Carney’s speech came immediately after the BoE’s nine rate-setters voted unanimously to hold interest rates at 0.75 per cent today.
— Bloomberg Brexit (@Brexit) November 1, 2018
His speech has given a boost to pound, which has risen as high as $1.2930 against the dollar.
Carney further said that the most likely outcome remains a negotiated transition, though the approach of the March deadline “concentrates the mind” of policymakers.
Compared to the past, interest rates are currently very low. Interest rate rises should be gradual and limited. Find out more in our visual summary: https://t.co/7LyteriXM7 #InflationReport pic.twitter.com/8V5i86uvIJ
— Bank of England (@bankofengland) November 1, 2018