Carney Speech: Process of Brexit is beginning to affect UK economy's supply capacity

Mark Carney, Governor of the Bank of England (BoE), is giving his remarks on the monetary policy decisions, with key headlines, via Reuters, found below:

  • Process of Brexit is beginning to affect UK economy's supply capacity
  • Level of investment in UK in 2020 is likely to be 20 pct below level forecast before Brexit vote
  • Any increases in bank rate would be expected to be gradual and limited
  • MPC stands ready to respond to changes in the economic outlook to ensure inflation returns to 2 pct

Key notes:

UK gilt yields drop on downward revision of inflation forecasts

The short duration and long duration UK gilt yields dropped after the Bank of England revised growth and inflation forecasts lower. 

GBP/USD plummets to 1.3160 post-BoE

The British pound met a wave of selling orders following the BoE interest rate decision today, dragging GBP/USD to fresh lows in the 1.3160 area.

About Mark Carney 

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.

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