Threadneedle Street: Interest Rates and No-Deal Brexit

threadneedle street: Threadneedle Street can support economic growth by cutting interest rates or using quantitative easing buying government bonds from commercial banks to pump up the amount of money circulating in the economy, according to The Guardian. It's more likely we would provide some stimulus in the event of no-deal Brexit, he told the MPs. Answering questions from MPs on the Commons Treasury committee on Wednesday, the governor of the Bank said a no-deal Brexit would probably require economic stimulus. We have said we would do what we could in the event of a no-deal scenario but there is no guarantee on that. Carney said the mounting risk of no deal was increasingly being reflected in the financial markets, such as in the value of the pound and the yield on government bonds. The Bank has previously said its response to no deal would not be automatic, meaning it could raise interest rates should it need to counter rising inflation caused by a sudden drop in the pound. (news.financializer.com). As reported in the news.