Bank of England mulls rate cut to cushion Brexit blow
LONDON — Britain’s vote to leave the European Union is already taking its toll on the British economy, raising speculation that the Bank of England will on Thursday decide to reduce its main interest rate to a record low.
With consumer and business confidence already showing signs of softening since the June 23 referendum and many forecasters predicting a slide into recession, economists think it’s inevitable that the Bank’s rate-setting monetary policy committee will choose to stimulate the economy, perhaps as soon as Thursday’s meeting.
Bank Governor Mark Carney has already indicated that some sort of stimulus will be offered during the summer months as his pre-vote warnings about the impact on the economy had begun to crystallize.
A plunge in consumer confidence as measured by market research firm GfK and evidence of markedly reduced business sentiment make the case for action sooner rather than later.