Interest rates more likely to be cut after no-deal Brexit, says Bank of England policymaker

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"2">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>Interest rates in the UK are more likely to be cut than hiked if Britain crashes out of the European Union without a deal&comma; according to a senior Bank of England policymaker&period;<&sol;p>&NewLine;<p>Gertjan Vlieghe&comma; an external member of the central bank’s Monetary Policy Committee&comma; told an audience in London&colon; &OpenCurlyDoubleQuote;In the case of a no-deal scenario&comma; I judge that an easing or an extended pause in monetary policy is more likely to be the appropriate policy response than a tightening&period;”<&sol;p>&NewLine;<p>His comments come with just over a month to go before Britain’s departure from the bloc on March 29 and with the UK Parliament in a deadlock over Brexit&comma; having rejected British Prime Minister Theresa May’s deal&period;<&sol;p>&NewLine;<p>Last week&comma; the Bank slashed its growth forecast for the British economy and warned about the mounting risk of a recession in the event of a no-deal Brexit&period;<&sol;p>&NewLine;<p>On Wednesday&comma; the Bank’s governor Mark Carney urged politicians to find a Brexit solution&period;<&sol;p>&NewLine;<p>Mr Vlieghe said a no-deal Brexit without any transitional arrangements would lead to &OpenCurlyDoubleQuote;economic disruption&comma; which could possibly be severe”&period;<&sol;p>&NewLine;<p>If a deal is reached which includes a transitional period&comma; the pound would be likely to strengthen&comma; which may lead to a tightening of monetary policy&comma; he said&period;<&sol;p>&NewLine;<p>However&comma; Mr Vlieghe said that recent economic data&comma; including inflation and GDP&comma; pointed to a sluggish economy&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Given that the data even in the past few weeks are suggesting the slowdown is continuing into the early part of this year&comma; both domestically and globally&comma; a lot needs to go right for this forecast to come to pass&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;I feel I can probably wait to see evidence of growth stabilising and inflation pressure rising before considering the next hike in Bank rate&period;”<&sol;p>&NewLine;<p>January inflation fell to a two-year low of 1&period;8&percnt; and undershot the Bank’s 2&percnt; target&comma; while recent GDP data revealed that economic growth slowed in the fourth quarter of 2018&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68ed11ffdf6dd">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; false &equals;&equals;&equals; &lpar; window&period;isWatlV1 &quest;&quest; false &rpar; &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&sol;&sol; Use Aditude scripts&period;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings &equals; window&period;tudeMappings &vert;&vert; &lbrack;&rsqb;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings&period;push&lpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;divId&colon; 'atatags-dynamic-belowpost-68ed11ffdf6dd'&comma;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;format&colon; 'belowpost'&comma;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub; &rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; document&period;readyState &equals;&equals;&equals; 'loading' &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;document&period;addEventListener&lpar; 'DOMContentLoaded'&comma; window&period;getAdSnippetCallback &rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub; else &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback&lpar;&rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<&sol;script>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>


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