FOREX TradingCharts.com

Financial News: BoE's Saunders Signals Rate Cut If Brexit Uncertainty

BoE's Saunders Signals Rate Cut If Brexit Uncertainty Persists

09/27/2019 - 10:23:00 (RTTNews)

(RTTNews) - The Bank of England may have to cut interest rates even if the UK avoids a no-deal Brexit as the high uncertainty linked to the event is likely to persist, the bank's policymaker Michael Saunders said in a speech on Friday. "I think it is quite plausible that the next move in Bank Rate would be down rather than up," Saunders said in a speech to the Barnsley & Rotherham Chamber of Commerce & Institute of Chartered Accountants.

The UK is set to exit the European Union on October 31 and Prime Minister Boris Johnson has vowed no delay even if there is a deal is not reached with EU regarding future relations. He is fighting opponents in the Parliament who are trying to avert a no-deal Brexit. The rate-setter said it is more likely that the high Brexit uncertainty would prolong even without a no-deal event actually occurring.

"In this case, it might well be appropriate to maintain a highly accommodative monetary policy stance for an extended period and perhaps to loosen policy at some stage, especially if global growth remains disappointing," the policymaker said.

Saunders pointed out that the effect of Brexit uncertainties is akin to the economy developing a "slow puncture" that causes growth to just a crawl.

The rate-setter expects the UK to face further cliff edge situations even if it avoids a no-deal Brexit, thus retaining the persistently high uncertainty.

Under such a scenario, the economic outlook would probably be considerably weaker than the central forecast in the August Inflation Report, though significantly less adverse than a no-deal Brexit, Saunders said.

After maintaining status quo this month, the Bank of England said the Brexit-related developments are making UK economic data more volatile.  Political events could lead to a further period of entrenched uncertainty, the central bank said. The bank forecast 0.2 percent growth in the third quarter and expects inflation to remain slightly below the 2 percent target in the near term.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Singapore Exports Continue To Fall In September (15 min(s), 18 sec(s) ago)
(RTTNews) - Singapore's non-oil domestic exports continued to decline in September albeit at a ...Full Story»

Australia Jobless Rate Eases To 5.2% In September (02 hr(s), 53 min(s), 18 sec(s) ago)
(RTTNews) - The unemployment rate in Australia came in at a seasonally adjusted 5.2 percent in Sep ...Full Story»

Australia Unemployment Data Due On Thursday (05 hr(s), 38 min(s), 18 sec(s) ago)
(RTTNews) - Australia will on Thursday release jobless numbers for September, highlighting a modes ...Full Story»

Fed Says U.S. Economy Expanding At Slight To Modest Pace (09 hr(s), 12 min(s), 18 sec(s) ago)
(RTTNews) - Two weeks ahead of the Federal Reserve's next monetary policy meeting, the central ...Full Story»

U.S. Business Inventories Virtually Unchanged In August (13 hr(s), 09 min(s), 18 sec(s) ago)
(RTTNews) - The Commerce Department released a report on Wednesday showing little change in U.S. b ...Full Story»

U.S. Homebuilder Confidence Unexpectedly Shows Continued Improvement (13 hr(s), 11 min(s), 18 sec(s) ago)
(RTTNews) - Homebuilder confidence in the U.S. unexpectedly climbed to its highest level in well o ...Full Story»

Hong Kong Banks Agree To Adopt Measures To Support Small Enterprises: HKMA (13 hr(s), 26 min(s), 18 sec(s) ago)
(RTTNews) - Hong Kong's banks agreed to take measures to support small and medium enterprises, ...Full Story»

U.S. Retail Sales Unexpectedly Decrease Amid Pullback In Auto Sales (14 hr(s), 26 min(s), 18 sec(s) ago)
(RTTNews) - Retail sales in the U.S. unexpectedly decreased in the month of September, according t ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Singapore Exports Continue To Fall In September

10/16/2019 - 23:23 PM (RTTNews)
(RTTNews) - Singapore's non-oil domestic exports continued to decline in September albeit at a ...Full Story>>

Australia Jobless Rate Eases To 5.2% In September

10/16/2019 - 20:45 PM (RTTNews)
(RTTNews) - The unemployment rate in Australia came in at a seasonally adjusted 5.2 percent in Sep ...Full Story>>

Australia Unemployment Data Due On Thursday

10/16/2019 - 18:00 PM (RTTNews)
(RTTNews) - Australia will on Thursday release jobless numbers for September, highlighting a modes ...Full Story>>

Fed Says U.S. Economy Expanding At Slight To Modest Pace

10/16/2019 - 14:26 PM (RTTNews)
(RTTNews) - Two weeks ahead of the Federal Reserve's next monetary policy meeting, the central ...Full Story>>

U.S. Business Inventories Virtually Unchanged In August

10/16/2019 - 10:29 AM (RTTNews)
(RTTNews) - The Commerce Department released a report on Wednesday showing little change in U.S. b ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.