BoE Carney Says He is Serene About CB Actions after Brexit

Bank of England Governor Mark Carney has said he is “absolutely serene” about the Bank’s preparations for the impact from the Brexit vote.

Mr Carney is being questioned by MPs about how the Bank handled the referendum outcome and its decision to cut interest rates to a record low.

The Bank was criticised by Brexit supporters for saying the economy would be hit from a vote to leave the EU.
But Mr Carney said the Bank’s decisions had so far been “validated”.

The “extraordinary preparations” made by the Bank “cushioned” the economy and will help the UK “make a success of Brexit”, he told MPs on the Treasury Select Committee.

“This financial system sailed through what was a surprise to the vast majority of financial market participants,” Mr Carney said.

MPs questioned whether the Bank was too aggressive in supporting the economy after the vote.
The UK’s services, manufacturing and construction industries have all showed signs of recovery in August after taking a hit in July.

However, Mr Carney said he was “absolutely comfortable” with the Bank’s decision to cut interest rates to 0.25% and pump billions of pounds into the economy.

He added that it is “welcome there is a rebound” in the economy.

via SOURCE

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