Carney: We are prepared to cut rates further if deflation takes hold

clock

The Bank of England has said it is prepared to cut rates further and expand its quantitative easing programme should the current downward slide in inflation worsen materially.

Presenting the Bank's Inflation Report today, Governor Mark Carney said the Bank "has the will, means and responsibility" to take further measures, including changing the pace of rate increases, cutting the bank rate to zero and further QE if risks materialise. With UK CPI inflation having hit a 14-year low in December but the UK economy growing at a reasonable pace, the Governor pointed to two potential risks which could cause the Bank to act. Firstly, lower oil prices could provide greater stimulus to real incomes and demand. On the other hand, the risks of disappointing global grow...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot