Brexit

Brexit: Mark Carney warns UK economy faces profound uncertainty

Name: Brexit: Mark Carney warns UK economy faces profound uncertainty
Uploaded: 2019-08-01T14:26:21.641Z
Duration: 43 s
Channel: Financial Times
Description: Policymakers hold rates steady but see one-in-three chance of economy shrinking in early 2020

Brexit uncertainty and global trade tensions are harming UK growth, with the Bank of England’s forecasts showing a one-in-three chance that the economy will shrink at the start of next year

August 1, 2019

Footage:Reuters

Transcript

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MARK CARNEY: Profound uncertainties over the future of the global trading system and the form that Brexit will take are weighing on UK economic performance. Until those uncertainties are resolved, shifting perceptions of them will drive volatility in market interest rates, in equity prices, and in currency values. Monetary policy cannot offset the real effects of these fundamental drivers of jobs growth and prosperity, but monetary policy can help smooth the adjustment of the economy to these shocks.