Bank of England (BoE) governor Mark Carney has told MPs that the decision to cut interest rates and introduce a package of fiscal stimulus measures will make Brexit a ‘success’. Carney has been criticised over the way the BoE handled its reaction to the vote to leave the EU.
In a package of reforms announced last month, the BoE cut the interest rate to 0.25%. At the same time it announced plans to relaunch a quantitative easing programme, buy £10 billion of UK corporate bonds and launch a £100 billion ‘term funding scheme’ for banks.
A recent ‘bounce back’ in economic data was ‘because the Bank took timely, comprehensive and concrete action and that action has had an impact’.
[Source: New Model Adviser - by Charles Walmsley - September 8, 2016]