FIRST AIRED: May 12, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

Bank of England braves Brexit backlash

Opening sequence

Opening sequence

Business

Bank of England braves Brexit backlash

0:00
17:32
More Info

COMING UP:Bank of England braves Brexit backlash

×

Transcript

00:00:00
>> Mark Carney may wish he had a crystal ball, with Britain's future hanging in the balance forecasting the future almost impossible. GOne certainty for the Bank of England Governor more Brexit uncertainty lies ahead and not just for the UK. On Thursday he was clear about the consequences of Britain leaving the EU.
00:00:19
Says Reuters financial correspondent Jamie McGeever.>> They're saying the economy could slow materially. We could be heading for sharply higher inflation and he said the sterling could fall sharply. Estimates on how much could be up to as much at 20% fall in sterling.>> What it means for interest rates is hard to tell.
00:00:42
There'd been speculation some policy makers might even call for a cut this time around. But unanimously, they voted to leave rates on hold.>> So when you put it all together, sharply lower pound, rising inflation. You think the Bank of England might have to raise rates in the event of a Brexit to bring inflation back to target.
00:01:01
And that's what Mark Carney said today. But you could also take the view that if the economy does fall off a cliff, and we go into a deep recession. Then that's not the conditions in which the Bank of England would want to be raising interest rates.>> Connie says the bank would try to offset any potential hit to the economy.
00:01:20
But the monetary policy can only go so far. Recent polls show voters believe the economy would fare better in the EU. But, they also point to a roughly even split on how people plan to cast their ballot.