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Don't assume BoE would cut rates after a no-deal Brexit - Ramsden

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By Reuters
Don't assume BoE would cut rates after a no-deal Brexit - Ramsden
The Bank of England is seen in the financial district during rainy weather in London, Britain, September 23, 2018. Picture taken September 23, 2018. To match Exclusive BRITAIN-EU/CITY REUTERS/Henry Nicholls   -   Copyright  HENRY NICHOLLS(Reuters)

LONDON (Reuters) – Bank of England Deputy Governor Dave Ramsden said on Friday that it was not clear that the central bank would cut interest rates if Britain failed to get a deal to smooth its exit from the European Union.

“It’s genuinely two-sided in that situation,” Ramsden said in response to a question at the annual conference of the Society of Professional Economists. “You’re not seeing all the factors moving you towards one outcome on policy.”

Ramsden echoed comments from other BoE policymakers who have said they would need to assess the balance of risks to inflation from a likely sharp fall in the value of sterling and lower investment — which would push up price pressures — against the probable weakening of the economy.

Ramsden said he thought a “no-deal” Brexit remained an unlikely outcome.

(Writing by William Schomberg; Editing by Alistair Smout)