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In Domestic Affairs

BoE considers a rate hike

18th October 2019

BoE considers a rate hike Pin It

The Bank of England (BoE) will seriously consider the possibility of interest rate increases if Prime Minister Boris Johnson manages to push his fresh Brexit deal with the European Union through the British Parliament. That said vice-governor of the British central bank Dave Ramsden in an interview.

Johnson signed a deal with EU government leaders on Thursday about an exit agreement. The BoE had not yet officially responded, although there were already reports that interest rate policy would be considered if the deal will pass in parliament. The latter is by no means certain.

According to Ramsden, the BoE’s view that “limited and gradual” increases are necessary for a smooth Brexit is still valid, despite the recent months of uncertainty and global economic adversity.

“We do not say in what time frame, but limited and gradual is a reasonable description.”

However, colleagues at Ramsden recently talked about interest rate cuts, even in the case of a Brexit deal.

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