Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

BREAKING NEWS

BREAKING NEWS

Bank of England's Ramsden says he is gloomier on growth than BoE consensus

Bank of England's Ramsden says he is gloomier on growth than BoE consensus
FILE PHOTO: Bank of England Deputy Governor for Markets and Banking, Dave Ramsden attends a Bank of England news conference, in the City of London, Britain November 1, 2018. Kirsty O'Connor/Pool via REUTERS -
Copyright
POOL(Reuters)
Text size Aa Aa

LONDON (Reuters) – Growth is likely to be slower than the Bank of England’s Monetary Policy Committee forecast earlier this month as productivity lags and investment risks being weaker than forecast, Deputy Governor Dave Ramsden said on Thursday.

“Relative to the best collective judgement expressed in the MPC’s central forecast I am … a little more pessimistic on GDP growth than my colleagues on the MPC,” he told businesses during a visit to Inverness in northeast Scotland.

Ramsden said his outlook for inflation and the right level of interest rates was similar to that of his colleagues, as weak productivity growth was likely to push upward on inflation, cancelling out the drag on inflation from slower GDP growth.

At the start of this month, BoE Governor Mark Carney said investors were underestimating how much interest rates could rise, even as the British central bank kept borrowing costs on hold due to Brexit uncertainty.

Ramsden said a no-deal Brexit with no transition period beforehand would have “large negative economic effects”.

But that would not automatically mean interest rates should be cut, due to the inflationary impact of a weaker pound and reduced productivity, he added, sticking to the BoE’s current stance on the issue.

(Reporting by David Milliken, Editing by Paul Sandle)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.