Near zero rates in the event of no-deal Brexi, Bank of England says

Business | 12 Jul 2019 7:31 pm

The Bank of England might have to cut interest rates to virtually zero if Britain crashes out of the EU without a deal, and it is not clear how long it would take for them to rise again, says Gertjan Vlieghe, a member of the bank's nine-person monetary policy committee, The Guardian reports.

Speaking at the London office of Thomas Reuters, Vlieghe said: “On balance I think it is more likely that I would move to cut bank rate towards the effective lower bound of close to 0 percent in the event of a no-deal scenario.

“It is highly uncertain when I would want to reverse these interest rate cuts,'' he said.

UK interest rates are already ultra low, at 0.75 percent, but the record low was 0.25 percent in the aftermath of the Brexit aftermath, when the monetary policy commitee felt an emergency response was necessary.

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