GBP: Carney warns changing monetary policy cannot prevent weaker growth

Governor Carney yesterday gave a speech in which he warned that BoE would not be able to prevent the weaker real income growth that is likely to come from Brexit. Alluding to the transitioning to new UK trade agreements, he said that it was possible for monetary policy to limit the damage.

Theresa May also spoke and reminded the audience that inflation reached the astonishing high of 22% in the 1980s (a figure to make anybody balk). She went on to defend free market economics, no doubt in reference to Jeremy Corbyn’s Labour conference speech delivered on Wednesday.

In a day for speeches, a founder member of the Monetary Policy Committee, Dame DeAnne Julius, warned that the independence of central banks is being threatened by quantitative easing. She added that QE is far more complicated than simply changing interest rates. However, while that may be the case, sometimes it is enough to simply hint that a rate change could be on the cards.

Today sees the release of UK growth rate and consumer confidence.