Carney- Rate cut likley this Summer

[BrilloPad]

So more QE to be pumped into the banks. And the trickle down will only reach the household staff of the top bankers. Who are immigrants anyway.

Personally I would cut corporation tax.

[CretinWatcher]

Good news for home owners though.

Good for zombie households with huge mortgages I suppose.
Yeah lets inflate that bubble some more and see where that gets us

[kaiser78]

There we go, savings and pensions destroyed some more, the pound falling even more.
The race to become a banana republic is on

Good news for home owners though.

[jamesbrown]

I listened to the speech and he was at pains to stress the trade-off between boosting demand and the negative side-effects of lower rates on credit supply, such as via bank profitability. If they do reduce rates, it will only be 0.25%, no further. I think the main focus will be on another round of QE (....infinity).

[CretinWatcher]

There we go, savings and pensions destroyed some more, the pound falling even more.
The race to become a banana republic is on

[Martin@AS Financial]

Taken from the Financial Reporter

Bank of England governor Mark Carney has said that in his view "the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer".

In a speech today, Carney said that "uncertainty over the pace, breadth and scale of these changes could weigh on our economic prospects for some time".

He also confirmed that the Bank of England will continue to offer Indexed Long-Term Repo operations on a weekly basis until end-September 2016 to provide additional flexibility in the Bank’s provision of liquidity insurance over the coming months.

Carney said that over the coming weeks, the Bank will consider "a host of other measures and policies to promote monetary and financial stability".

He admitted that a return of inflation to the 2% target probably required a gradually rising path for Bank Rate over the next three years, instead of the two previously forecasted.

Carney added: "The MPC will face a trade-off between stabilising inflation on the one hand and avoiding undue volatility in output and employment on the other. The implications for monetary policy will depend on the relative magnitudes of these effects.

He said that an "uncomfortable truth is that there are limits to what the Bank of England can do".

Carney concluded: "Monetary policy cannot immediately or fully offset the economic implications of a large, negative shock. The future potential of this economy and its implications for jobs, real wages and wealth are not the gifts of monetary policymakers.

"These will be driven by much bigger decisions; by bigger plans that are being formulated by others. However, we will relentlessly pursue monetary and financial stability. And by doing so we will facilitate the adjustments needed to realise this economy’s full potential."