Amid The Possibility Of Interest Hike, Investors Take Cautious Steps, Says Broadbent Of BoE


03/23/2017

BoE’s forecast indicate rises in interest rates while Brexit decision weighs investors’ outlook.



Amid The Possibility Of Interest Hike, Investors Take Cautious Steps, Says Broadbent Of BoE
According to Ben Broadbent, the deputy governor of Bank of England, there is a possibility of a hike in the interest rates, while he continued highlighting a “strong sense of caution among investors” that concerns Britain following its decision of Brexit.
 
In Broadbent’s words:
“It's quite possible that interest rates could go up. It's quite possible. Our forecast was conditioned on pretty gentle rises but rises nonetheless”.
 
However, Broadbent also focussed on a “sense of nervousness” regarding the “economic prospect” of Britain which added onto the outlook, while he added:
“We think this caution that is very strongly there in the foreign exchange market will also apply somewhat, quite a bit, to investors, businesses that might otherwise have a powerful incentive to invest in the UK because of this”.
 
 
 
 
References:
http://www.reuters.com