The Bank of England is prepared to cut interest rates and restart quantitative easing to support the economy and protect jobs in the event of a “disorderly” Brexit, Mark Carney has said.
“Exactly the same framework would apply” as after the referendum, when the Bank cut rates by a quarter point to 0.25% and injected £60bn of QE into the economy, the governor told the Society of Professional Economists.
Carney was careful not to give any promises but could scarcely have been clearer that there would be more monetary stimulus in the event of a bad exit, which would be expected to deliver a similar economic shock to the aftermath of the referendum, when sterling crashed and business confidence tumbled.
