Unemployment remains at 4.2% and wage growth slips back to 2.5%; Mark Carney tells MPs that no deal Brexit would have big economic consequences
Bank of England governor Mark Carney has said a no-deal Brexit would have big economic consequences and prompt a review of interest rates, as well as leaving many bankers idle, reports Reuters:
“Our job is to make sure we are as prepared as possible,” Carney told lawmakers at a parliamentary hearing held at an air show in Farnborough, southern England.
Crashing out would prompt the BoE’s monetary policy committee to reassess the economic outlook and interest rates.
#CARNEY swoops at @FIAFarnborough #airshow. Tone of comments isn’t new. But a reminder that EU crash-out w. no deal could trigger rates rethink: “Would be a material event. I wouldn’t prejudge in which direction, though” At worst, fragile #GBPUSD eyes $1.3092-31 range again ^KO pic.twitter.com/S7qqVTR9gz
Here’s our story on the day’s UK data:
The rate of pay growth for British workers has fallen to the lowest level in six months, despite record numbers of people in work across the country, official figures show.
Heaping renewed pressure on the Bank of England to delay raising interest rates from as early as August, the latest snapshot for the British labour market showed workers are still unable to demand higher pay despite the lowest unemployment levels since the mid-1970s. High rates of employment and low levels of unemployment usually signal rising wages.