LONDON (Reuters) - Bank of England Governor Mark Carney and some of his fellow policymakers are answering questions after the central bank cut its growth and inflation forecasts in its latest inflation report and voted unanimously to keep interest rates on hold.
Below are some of their comments.
Asked if he stands by repeated remarks that next rate move is likely to be up rather than down:
“Absolutely. The whole MPC stands by that.”
“Going across the numbers of people who are directly affected, indirectly affected by this, you get into the orders of magnitude of probably 5 or 6 million workers across this country.”
“Overall we see the net impact of this on wages and inflation of about 10 basis points ultimately per annum moving through the forecast. So it’s something and it’s incorporated into the forecast.”
“The outlook for trade is particularly challenging, with net exports expected to drag on UK growth over the forecast period. However, there are three domestic offsets to the tightening of global financial conditions. First, sterling has fallen 3-1/2 percent since November, the largest decline between Inflation Reports since the crisis. Second, the gilt yield curve has fallen further, with UK 10-year rates down 25 basis points since November. And third, the UK financial system is now resilient.”
Reporting by David Milliken, Ana Nicolaci da Costa, Andy Bruce, Paul Sandle; Editing by Hugh Lawson