Bank of England says rate cut is plausible if Brexit woes continue

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Bank of England says rate cut is plausible if Brexit woes continue

As Brexit uncertainties continue to hound England as well as the entire European Union, the Bank of England is ready and willing to cut interest rates should it deem necessary, according to BoE policymaker Michael Saunders on Friday.

“I think it is quite plausible that the next move in Bank Rate would be down rather than up,” said Saunders.

Prime Minister Boris Johnson’s adamant statement of exiting the EU on Oct. 31 even without a deal opposes the parliament stand as they voted to not leave EU without a deal.

When asked about this, Saunders said that his view even if there was no agreement made upon Brexit, uncertainties would remain and hit the UK economy.

“In this case, it might well be appropriate to maintain a highly accommodative monetary policy stance for an extended period and perhaps to loosen policy at some stage, especially if global growth remains disappointing,” he said.

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