In his prepared remarks to be delivered at an event for local businesses in Scunthorpe, northern England, Bank of England Chief Economist Andy Haldane said the case for holding rates until the road becomes clearer was strong.
The GBP/USD pair, which has been fluctuating in a wide daily range while responding to the latest political developments, was last seen trading at 1.2445, losing 0.25% on the day. Below are some key takeaways from Haldane’s speech, per Reuters.
“I would be very cautious about considering a monetary policy loosening, barring some sharp economic downturn.”
“Despite Brexit-related volatility, underlying UK growth is fairly steady, a fraction below cruising altitude.”
“UK housing market may well be bottoming out.”
“As best we can tell, there is little, if any, slack left in the UK economy.”
“Path of interest rates would never be automatic after either a Brexit deal or no deal.”
“The market path of interest rates is not an accurate reflection of the most likely path of interest rates.”
“There is a risk of people normalising the deviance in monetary policy since the financial crisis.”
“A decade on, the game has changed and so too might the policy prescription needed in dealing with any downturn.”
“Super-charging the supply-side of the economy is what is now needed.”
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