We’ve cut interest rates, but what happens next? | David Blanchflower

Discussion in 'Market News' started by Lily, Aug 9, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    It may take a year to find out the true path of GDP growth, but more stimulus is likely, and uncertainty following the Brexit vote will not be resolved for several years
    The Bank of England’s Monetary Policy Committee (MPC) did the right thing last week by adding stimulus to the UK economy. It made it clear that the reason was the vote for Brexit. “The committee’s prior belief had been that this outcome could lead to a materially lower path for growth,” it explained. “The early indications had been broadly consistent with this assessment, and this had been reflected in the August inflation report projections … The referendum outcome had a pronounced effect on the domestic outlook.”

    Related: Bank of England's stimulus package has bought the chancellor some time

    The slowing of the economy is not because economists like me talked it down. It is the lack of a post-Brexit plan

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