This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2019/jun/26/oil-and-bitcoin-rally-as-middle-east-tensions-drive-markets-business-live
The article has changed 14 times. There is an RSS feed of changes available.
Version 6 | Version 7 |
---|---|
Bank of England warns 'no-deal' Brexit fears have risen - business live | Bank of England warns 'no-deal' Brexit fears have risen - business live |
(30 minutes later) | |
Q: Young people are growing up in an era where interest rates have been extremely low for a decade - isn’t that a problem for the future? | |
Umbrella’s don’t cause rain, shoots back Mark Carney (quoting his MPC colleague Gertjan Vlieghe) | |
There are structural reasons why borrowing costs are so low - central banks are providing support to help economies. But yes, there are macro-prudential risks from such low interest rates, Carney says. | |
Q: Back in 2014, you told the committee that monetary policy was at “extraordinary, if not emergency” settings. Would you agree that it still is? | |
Carney does not -- even though interest rates (0.75%) are barely higher than five years ago (0.5%). | |
He argues that ‘equilibrium’ interest rates (the point where you’re neither stimulating nor strangling the economy) are lower than in 2014. So borrowing costs today are ‘accommodative’, but not extraordinarily so, the governor insists. | |
Mark Carney warns that “crystallising” businesses’ concerns over Brexit, by plunging out of the EU without a deal, would cause economic damage. | |
It would lead to some ‘capital scrapping’ as firms canned equipment, which would also hurt skilled workers, he adds. | |
Back in Westminster, Mark Carney has warned MPs that pay growth will probably slow this summer - having clawed its way up to 3.5% per year. | |
He says the ‘tightness in the labour market’ has pushed earnings up recently, but Britain has still suffered the worst decade for real pay growth since the 1850s. | |
George Osborne never managed to balance the books as UK chancellor, and he’s not doing much better following his switch to journalism. | |
Osborne’s Evening Standard lost more than £11m before tax last year, but did achieve a 2% rise in revenues in a tough market. | |
Evening Standard reports £11.5m loss amid ad struggles | |
Jack Maidment of Mail Online suspects that Mark Carney and Boris Johnson aren’t poles apart on Gatt 24, following the governor’s comments earlier. | Jack Maidment of Mail Online suspects that Mark Carney and Boris Johnson aren’t poles apart on Gatt 24, following the governor’s comments earlier. |
Seems like Mark Carney and Boris Johnson are actually in the same place on GATT. Mr Johnson yesterday talked about getting an 'agreement' to secure standstill. Mr Carney just told MPs: 'There needs to be an agreement and I believe that was Plan B as described yesterday.' | Seems like Mark Carney and Boris Johnson are actually in the same place on GATT. Mr Johnson yesterday talked about getting an 'agreement' to secure standstill. Mr Carney just told MPs: 'There needs to be an agreement and I believe that was Plan B as described yesterday.' |
The issue, though, is whether the EU would go along with Boris’s Plan B, if it didn’t provide a solution to the Irish border question, or settle Britain’s outstanding financial liabilities.... | The issue, though, is whether the EU would go along with Boris’s Plan B, if it didn’t provide a solution to the Irish border question, or settle Britain’s outstanding financial liabilities.... |
Deputy governor Sir Jon Cunliffe has warned the committee that the international economy is providing less support to the UK than in 2018. | Deputy governor Sir Jon Cunliffe has warned the committee that the international economy is providing less support to the UK than in 2018. |
Q: Don’t we need to conclude Brexit by Halloween, and end this nightmare, one way or another, asks Brexiteer MP Charlie Elphicke. | Q: Don’t we need to conclude Brexit by Halloween, and end this nightmare, one way or another, asks Brexiteer MP Charlie Elphicke. |
Mark Carney does his best impression of an Oxbridge don, telling the committee dryly that: | Mark Carney does his best impression of an Oxbridge don, telling the committee dryly that: |
There’s a reason that that 40-plus trade deals stuck between advanced economies in the last quarter century have always had a transition from the status quo to the new arrangement.... | There’s a reason that that 40-plus trade deals stuck between advanced economies in the last quarter century have always had a transition from the status quo to the new arrangement.... |
I would underscore that it is highly desirable to give businesses enough time to adjust to the new reality. | I would underscore that it is highly desirable to give businesses enough time to adjust to the new reality. |
Of course, it also matters what that new situation is, adds MPC member Silvana Tenreyro. | Of course, it also matters what that new situation is, adds MPC member Silvana Tenreyro. |
Worryingly, Mark Carney doesn’t expect the weak business investment to recover soon. Survey data suggests it was weak in the current quarter (April-June). | Worryingly, Mark Carney doesn’t expect the weak business investment to recover soon. Survey data suggests it was weak in the current quarter (April-June). |
MPC member Michael Saunders chimes in, reiterating that market fears of a no-deal Brexit have risen. | MPC member Michael Saunders chimes in, reiterating that market fears of a no-deal Brexit have risen. |
The outlook for the economy would be very different now (ie better), if we knew now that we’d see a smooth Brexit, rather than face rolling deadlines and uncertainty, Saunders adds. | The outlook for the economy would be very different now (ie better), if we knew now that we’d see a smooth Brexit, rather than face rolling deadlines and uncertainty, Saunders adds. |