British Bonds Go Negative as Bank of England Plans More Money Creation

by Emily Cadman, Financial Times, London

The Bank of England is preparing to unleash another round of monetary stimulus as it battles to contain the economic fallout of The UK’s decision to leave EU.

In a stark warning to politicians, governor Mark Carney said a downturn was on its way and Britain was already suffering from “economic post-traumatic stress disorder.”

He said the central bank would take “whatever action is needed to support growth,” which probably included “some monetary policy easing” in the next few months, in an attempt to reassure the markets and the public.

But Mr. Carney also said that central bankers could do only a limited amount to mitigate the pain.

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