BOE Cuts Forecasts, Says Brexit Damage to Economy Has Risen
Thursday, 7 February 2019 19:18 WIB | FISCAL & MONETARY |BOE

The Bank of England warned that damage to the economy from Brexit has increased as it cut its growth forecast and predicted a dramatic slump in investment.

As the U.K. approaches the March 29 deadline to leave the European Union without yet having a deal for a new relationship settled, businesses are slashing spending and consumers are growing more worried.

The BOE said that œuncertainty had intensified, and now forecasts 1.2 percent growth this year, down from 1.7 percent predicted three months ago, the biggest downgrade since the 2016 referendum. The global backdrop has also weakened, as highlighted in the European Commission™s sweeping cuts to the euro-area economic outlook on Thursday.

The BOE™s decision follows recent dovish statements from the U.S. Federal Reserve and European Central Bank. U.K. officials noted the impact of China™s slowdown and said trade wasn™t contributing as much to growth as they expected.

The forecasts came alongside the latest policy decision by the Monetary Policy Committee, led by Governor Mark Carney. It voted 9-0 to hold the key interest rate at 0.75 percent, as predicted by all economists in a Bloomberg survey. The bank last lifted the rate in August.

With Brexit hanging over the outlook, the bank said that its forecasts would need to be updated œonce greater clarity emerged about the nature of EU withdrawal. Acknowledging the huge impact of uncertainty, it ran an analysis showing that less uncertainty would lead to much stronger growth -- 1.6 percent this year and 2.2 percent in 2020.

Source : Bloomberg

RELATED NEWS

RBA minutes: Board prepared to ease policy further if needed (AUD lower)
Tuesday, 19 November 2019 07:55 WIB

The minutes from the RBA Board's 5th November meeting have been released which shows the RBA has an easing bias. AUD/USD is lower on the minutes, down -0.20% at the time of writing. Bored prepared to ease policy further if needed and case could be made for a rate cut at November meeting. Decided r...

FOMC Chairman Powell testimony: Baseline outlook for US economy remains favourable
Wednesday, 13 November 2019 23:14 WIB

In remarks prepared for delivery to the Joint Economic Committee of Congress on Wednesday, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, will reiterate that the baseline outlook for the US economy remains favourable and say that the monetary policy is likely to remain...

Japanese PM Abe: Want extra budget to assist economic recovery
Tuesday, 12 November 2019 11:40 WIB

Fresh comments are crossing the wires from the Japanese PM Shinzo Abe, as he expresses the need for an extra budget to assist the economic recovery. Nothing further is reported on the same. Last week, Japan™s PM Abe was going to instruct ministers to compile stimulus package - NHK. Meanwhile, th...

RBA Sees Moderate Recovery Persisting, But No Wage-Growth Gains
Friday, 8 November 2019 07:58 WIB

Australia™s central bank maintained its glass half full view, reinforcing that the economy has emerged from its soft patch, while forecasting no acceleration in wage growth and core inflation barely reaching the bottom of its target. In its quarterly update of the economic outlook released in Syd...

Carney speech: Trade Concerns Can Reduce Global Supply Capacity and Growth
Thursday, 7 November 2019 21:06 WIB

Following the Bank of England's decision to keep its policy rate unchanged at 0.75%, Governor Mark Carney is delivering his remarks on the monetary policy outlook in a press conference with key quotes, via Reuters, found below. "Over time trade concerns can reduce global supply capacity and growth....

ANOTHER NEWS
Hong Kong stocks open marginally lower
Tuesday, 19 November 2019 09:02 WIB Hong Kong stocks inched down at the start of business Tuesday following the previous day's jump of more than one percent, with investors also on edge over the China-US trade talks and ongoing protests in the city. The Hang Seng index dipped 9.77...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.