Wednesday, 24 July 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
BOE Cuts Forecasts, Says Brexit Damage to Economy Has Risen
Thursday, 7 February 2019 19:18 WIB | FISCAL & MONETARY |BOE

The Bank of England warned that damage to the economy from Brexit has increased as it cut its growth forecast and predicted a dramatic slump in investment.

As the U.K. approaches the March 29 deadline to leave the European Union without yet having a deal for a new relationship settled, businesses are slashing spending and consumers are growing more worried.

The BOE said that œuncertainty had intensified, and now forecasts 1.2 percent growth this year, down from 1.7 percent predicted three months ago, the biggest downgrade since the 2016 referendum. The global backdrop has also weakened, as highlighted in the European Commission™s sweeping cuts to the euro-area economic outlook on Thursday.

The BOE™s decision follows recent dovish statements from the U.S. Federal Reserve and European Central Bank. U.K. officials noted the impact of China™s slowdown and said trade wasn™t contributing as much to growth as they expected.

The forecasts came alongside the latest policy decision by the Monetary Policy Committee, led by Governor Mark Carney. It voted 9-0 to hold the key interest rate at 0.75 percent, as predicted by all economists in a Bloomberg survey. The bank last lifted the rate in August.

With Brexit hanging over the outlook, the bank said that its forecasts would need to be updated œonce greater clarity emerged about the nature of EU withdrawal. Acknowledging the huge impact of uncertainty, it ran an analysis showing that less uncertainty would lead to much stronger growth -- 1.6 percent this year and 2.2 percent in 2020.

Source : Bloomberg

RELATED NEWS
Fed Chief Powell Says He Thinks Core Inflation Picked Up a Bit in June...
Wednesday, 17 July 2019 00:16 WIB

Federal Reserve Chairman Jerome Powell said Tuesday that the central bank now estimates that a key measure of core inflation increased in June to its highest level in four months but added that, despi...

RBA Monitoring Job Market Closely, to Adjust Rates If Needed...
Tuesday, 16 July 2019 08:53 WIB

Australia's central bank is focused on the jobs market and said it will adjust policy if needed to support economic growth and keep inflation on track to return to target. In minutes of its July 2 me...

Powell says U.S. economy was hit by 'confidence shock' - it has only partly recovered...
Thursday, 11 July 2019 23:00 WIB

Federal Reserve Chairman Jerome Powell said Thursday that the U.S. economy was hit by a severe œconfidence shock in May from which it has only partly recovered. œYou saw business confidence su...

'Many' Fed Officials Said in June They'd Be Willing to Cut Interest Rates if Uncertainty Still Weighs on Outlook, Minutes Show...
Thursday, 11 July 2019 01:18 WIB

Many Federal Reserve officials said in their meeting in June that they would be willing to cut interest rates if the economy continued to struggle in coming weeks, according to minutes of the discussi...

Powell speech: Weak inflation could be even more persistent than Fed currently anticipates...
Wednesday, 10 July 2019 21:00 WIB

In his prepared statement to be delivered at his semi-annual testimony to the Congress, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, reiterated that the Fed will act '...

LATEST NEWS
South Korean Claims of Warning Shots to Russian Jets Disputed by Moscow

South Korean air force jets fired 360 rounds of warning shots Tuesday after a Russian military plane twice violated South Korea's airspace off the country's east coast, Seoul officials said in an announcement that was quickly disputed by...

Stocks rise after strong earnings from Coca-Cola and United Technologies

Stocks rose on Tuesday as investors cheered strong quarterly numbers from companies like Coca-Cola and United Technologies. The Dow Jones Industrial Average climbed 84 points, or 0.3%. The S&P 500 and Nasdaq Composite also advanced 0.3%...

European stocks close higher on strong earnings; Johnson wins UK leadership race

European stocks closed higher Tuesday as investors digested a strong set of corporate results and looked ahead to this week™s European Central Bank policy meeting. The pan-European Stoxx 600 closed up 0.98% to 391.54 with the majority of sectors...

POPULAR NEWS
Silver closes at 13-month high as gold ekes out a gain
Tuesday, 23 July 2019 02:19 WIB

Silver futures settled at a 13-month high on Monday, outpacing strength in gold, which saw prices eke out only a modest gain. Rising geopolitical...

Gold Prices Rise on Rate Cut Expectations
Monday, 22 July 2019 13:11 WIB

Gold prices rose on Monday in Asia after landing a second-straight week of gains as traders expect a U.S. rate cut this month. Gold futures for...

Gold looks for direction after hitting 6-year high
Monday, 22 July 2019 19:47 WIB

Gold futures hovered near unchanged Monday, in consolidation mode after hitting a six-year high last week but underpinned by rising geopolitical...

Gold Retreats Further From Six-Year Peak as Deep Rate Cut Views Fade
Monday, 22 July 2019 09:47 WIB

Gold prices inched lower on Monday, extending losses after the metal hit a six-year peak on Friday, as investors rolled back expectations for a...