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WickedsDesire -> Carney warns Brexit uncertainty is building (8/3/2017 6:19:11 AM)
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Carney warns Brexit uncertainty is building
The governor of the Bank of England has warned that uncertainty over Brexit is already weighing on the economy.
Mark Carney's comments came as the Bank voted to hold rates and cut growth forecasts.
It edged this year's growth forecast down to 1.7% from its previous forecast of 1.9% made in May. It also cut its forecast for 2018 from 1.7% to 1.6%.
Sterling dropped to a nine-month low against the euro after the downward revision to the growth forecast.
The pound fell about 0.76% to 1.1063 euros.
The bank voted 6-2 to keep interest rates on hold at 0.25%. They have been at that level since August last year.
Mr Carney said that business investment was slower than it would have been expected to be, because of Brexit.
...It is also now gloomier on prospects for wage growth and thinks wages will grow by 3% in 2018 down from the 3.5% estimate it made in May.
Weak wage growth combined with rising inflation has been weighing on the spending power of households...
...The bank highlighted that the 18% fall in the pound since November 2015 has been raising the price of imports for the UK, which in turn has been making life more expensive for consumers.
...Bank stimulus
Members of the MPC also voted in favour of extending a credit facility to British banks from £100bn to £115bn.
The so-called Term Funding Scheme (TFS) runs until February 2018 and has already lent £78bn to banks at close to the bank's base rate of 0.25%.
The TFS is backed by the Treasury.
Better do the obligatory UK thread.
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