Rba says banks lifted rates to boost profits in the wake of the global crisis
The Bank of England cut rates on Wednesday, lifting the overnight lending 진주안마rate to 1.5pc to boost profits.
But the governor of the Bank of England said banks could not lift rates for fear of further losses on lending. He said the decision was the least costly to the economy.
Mr Carney said the Bank was contin빅 카지노uing to work with banks to keep interest rates low for the long run and warned investors to prepare for rising volatility as the Fed moves to raise rates for a fifth time this year.
Mr Carney said the rate had fallen from its record low of 1.5pc in December 2008 and would remain in the “lower-to-moderate” range until the start of 2017.
However, he warned against adding to losses caused by risks created by Britain’s departure from the European Union. “We are going to see more volatility and a much larger risk than we’ve experienced over the last several years,” he said.
Earlier, Mr Carney told Parliament that Britain’s departure from the EU had “made a huge difference” to economic growth and that inflation remained low.
“We’re not a sovereign nation in which we can make decisions based on what would be the lowest level of the overall employment and inflation expectations,” he said.
He also told MPs the ECB will introduce new tools that are likely to reduce risks associated with “high-quality, sustainable investment” that the Bank of England said have created record growth in recent years.
“I will continue to stand by the view that this has made a huge difference to our economic and monetary policy tools in the monetary-policy toolbox,” he said.
Mr Carney also dismissed suggestions that the financial sector was being overly cautious and warned that “the evidence is rather mixed”.
“We have been concerned about the quality of investment and the balance between supply and demand, but that may not be as robust as some people might think,” he said.
The chancellor confirmed in September that th카지노 게임 사이트e US Federal Reserve had increased the $85bn it would purchase bank assets this year by $6bn because of the economic pain caused by rising US interest rates, despite the Fed’s decision to maintain a tighter policy.