Bank of England governor Mark Carney warns that Brexit will hurt Britain's growth prospects in the short term. He is also expecting higher inflation but sees only "limited and gradual" interest rate hikes.
The Bank of England says all seven big UK lenders would be able to keep the show on the road in the event of a major financial crisis. However, uncertainties over Brexit still cloud the entire picture.
Britain's central bank has done what it avoided doing for the past 10 years. It's hiked interest rates to curb inflation caused by a steep drop in the pound's value. But the marginal rise is of a rather symbolic nature.
Britain's sluggish economy has expanded again in recent months. Quarterly growth came as an unexpected boost clearing the way for the Bank of England to raise interest rates next week, experts argued.
The Bank of England has warned retail lenders to bulk up capital reserves by the end of 2018. As UK household indebtedness grows, the bank's governor warned lenders against "forgetting the lessons of the past."
© 2017 Deutsche Welle |
Legal notice |
| Mobile version