Outgoing BoE Governor Mark Carney said today that over the past year, UK growth has “slowed below potential” because of “weaker external backdrop and a persistent drag from entrenched Brexit uncertainties”. However, growth is expected to pick up ahead as “supported by the reduction of Brexit-related uncertainties, an easing of fiscal policy and a modest recovery in global growth.”
However, the rebound is “not, of course, assured”. there was a debate at the MPC “over the relative merits of near term stimulus to reinforce the expected recovery in UK growth and inflation”. “If evidence builds that the weakness in activity could persist, risk management considerations would favour a relatively prompt response.”
