LONDON (Reuters) – Bank of England policymakers will be “prudent not passive” after Britain leaves the European Union, and moves in the exchange rate will be only one factor in determining the right path for interest rates, BoE Governor Mark Carney said on Wednesday.
“From a monetary policy perspective, the Monetary Policy Committee is well-prepared for whichever path the economy takes. We have the tools we need. We will be prudent not passive,” Carney said in an online discussion hosted by the central bank.
Carney added that movements in sterling tended to have relatively large and persistent effects on British consumer prices, and so had a material effect on the inflation outlook.
(Reporting by David Milliken, editing by Andy Bruce)