Mark Carney hinted that policymakers could unleash a fresh round of monetary stimulus to boost growth as soon as this week
by Szu Ping Chan
The Bank of England’s action to keep banks lending following the Brexit vote is no “silver bullet” for preventing a UK downturn, its Governor has warned.
Mark Carney said steps to strengthen bank balance sheets after the financial crisis meant there “won’t be a credit crunch”, but stressed that demand for loans depended on the economy.
He also hinted that policymakers could unleash a fresh round of monetary stimulus to boost growth as soon as this week.
Mr Carney told the Commons Treasury Committee: “If the outlook has worsened, to use that term, in the judgment of the [Monetary Policy Committee] there always could be monetary response if that is consistent with its remit.”