MANCHESTER, England (Reuters) – Bank of England Governor Mark Carney said on Monday the British central bank had the ability to respond to either slower growth or higher inflation which could follow the country’s departure from the European Union.
“We have the flexibility to respond to circumstances in either direction – stronger growth or weaker inflation – if necessary,” Carney said when asked about the risk of a recession in Britain and whether the BoE had the tools to respond.
He also said Britain’s financial system was strong enough to withstand any Brexit turbulence.
Carney was responding to a question from a reporter at an event to announce the selection of mathematician Alan Turing, who helped Britain win World War Two with his code-cracking, to appear on a new 50-pound banknote.
(Writing by William Schomberg; Editing by Andy Bruce)