Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
By David Robinson
LONDON (MNI) - Bank of England Governor Mark Carney said the global economy
was slowing and downside risks have intensified.
Following are key points from the speech at a Financial Times event in
--Carney said nothing about the likely timing of the next UK rate hike or
the amount of tightening that would likely be required. While gradual tightening
would continue to be justified if the BOE's central Brexit scenario plays out,
he highlighted downside risks.
--The global economy is decelerating and downside risks have intensified
but he most likely outcome is that growth stabilises around a new, lower trend
rather than sliding towards recession.
"Global momentum is now weakening in all major regions and downside risks
have intensified. The proportion of the global economy growing above trend has
fallen from four-fifths to one-third," he said.
--Carney stressed that the Bank's central scenario, of global economic
growth stabilising, is only the most likely outcome and that risks to the
downside are clear. A trend to protectionism is showing up in reduced trade and
an intensification of the trade wars would hit global growth harder.
"Risks from China and from de-globalisation are significant and growing,"
Trade growth is lagging global growth, and Bank estimates suggest a 10%
rise in US tariffs would knock 1 percentage point off global growth through
trade channels alone.
--Carney cited Brexit as a test case, showing whether a way could be found
to keep an economy open while dealing with popular concerns over democratic
"It is in the interests of everybody ... that a Brexit solution that works
for all is found in the weeks ahead," he said.
--MNI London Bureau; tel: +44 203-586-2223; email: firstname.lastname@example.org