LONDON (Reuters) – The Bank of England lifted its growth forecasts on Thursday but warned Brexit continued to cloud the outlook for monetary policy and said there was little immediate downside to waiting for a clearer view ahead.
Below are comments from Mark Carney and other policymakers:
CARNEY ON FORECASTS
The MPC’s latest projections imply that the current market curve, used as a conditioning assumption for our forecast, is unequal to the task of meeting the MPC’s remit.
CARNEY ON THE MARKET CURVE
There are insufficient hikes in the current market curve to be consistent with our remit.
CARNEY ON INVESTMENT V HIRING
What we’re seeing now is there is evidence that the uncertainty around Brexit is effectively raising the hurdle rate for business investment. So the relative cost of investment v hiring has shifted quite substantially in favour of hiring.
The consequence of that … will have some implications for productivity.
CARNEY ON BREXIT
They (businesses) don’t expect this (Brexit) to be resolved for some time….in that environment it is difficult to make those longer term investment decisions.
CARNEY ON INFLATION
There is steadily building domestic inflationary pressures over the course (of the forecast). When it’s 2.1 in year two, and 2.2 at year three and rising offstage, that’s not target-consistent, or remit-consistent inflation. Again, when the economy is in a position of considerable excess demand.