Carney: Drop in sterling will support exporters

5 July 2016, 14:59
Sherif Hasan
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Carney presser following the release of the FPC's Financial Stability report

  • BOE will be straight with the British people
  • Now likely that adjustments in commercial real-estate and will tighten credit conditions
  • There is growing evidence that post Brexit uncertainty has delayed decisions on investment
  • Financial markets have coped well with Brexit volatility
  • Markets are focused on banks returns not resilience
  • BOE can provide substantial FX liquidity if required
  • BOE sees institutions using liquidity to finance loans
  • BOE will use the flexibility in UK regulations to the greatest extent possible
  • BOE will ensure that no bank increases dividends or distributions to shareholders due to BOE rule changes
  • BOE cannot fully offset Brexit volatility
  • Bank is putting a clear plan into place quickly
  • Future potential of the UK economy is not the gift of the BOE but will be driven by others in the private and public sectors

He's making it clear that the bank is on the ball. It sounds like the BOE are getting prepared for possible worst case scenariso and there's nothing wrong with planning for that, even if it doesn't happen. To often governments and central banks haven't planned enough and had their arses spanked for it.


Finger on the pulse

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