The Latest: UK rates could rise in case of no deal Brexit
LONDON (AP) – The Latest on the Bank of England’s interest rate announcement (all times local):
Bank of England Governor Mark Carney says U.K. interest rates may have to rise even if the country faces a potential recession after crashing out of the European Union without a deal in March.
Speaking at a press briefing after the bank kept its main interest rate on hold at 0.75 percent, Carney said “there are scenarios where policy would have to be tightened” in the event the country leaves the EU without a deal and without a transition to new trading arrangements. In that event, Britain would have to do business with the EU under World Trade Organization rules, which would mean tariffs slapped on British exports.
Though he said this is “not the most likely scenario,” Carney said policymakers would have to weigh the impact of a disruptive Brexit on such things as the pound and inflation. The bank’s primary mission, he noted, is ensuring stable inflation.