Market news
26.06.2019, 10:58

BoE governor Carney: UK economy is near an equilibrium

  • Tightness in UK labour market has been feeding through into pay growth
  • Not seeing ddebt-fuelled consumption growth in any shape or form
  • Survey data points to lacklustre business investment in Q2
  • Doesn’t expect turnaround in weak business investment in short term
  • Expectations of a no-deal Brexit have risen, thus affecting the economy
  • But markets are not saying that no-deal is the most likely Brexit scenario
  • Business uncertainty is as high as it was before the 29 March deadline
  • Housing market has been affected by Brexit deadlines
  • If headwinds in the economy lift, higher rates would be appropriate
  • Monetary policy is accommodative but not extraordinarily accommodative

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