BoE’S CARNEY EASES BANK RULES TO MEET ‘BREXIT’ CHALLENGE

International, Page 16

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London, July 5: Mark Carney pledged to shore up financial stability as he warned that risks from Brexit have started to crystallise.

“There is the prospect of a material slowing of the economy,” the BoE gover nor said at a press briefing in London on Tuesday. “The number of vulnerable households could increase due to a tougher economic outlook.” On a day when a survey showed a plunge in business confidence and Aviva followed Standard Life Investments in suspending trading in a real-estate fund, the governor took steps to spur bank lending and signaled rate cuts could be in the offing this summer.

Carney’s third appearance in 12 days since the UK vote highlights his role as a beacon of stability while political infighting heightens uncertainty over how the country will proceed.

The governor “is offering clear leadership and boosting business confidence at a time of political and economic uncertainty,” said Adam Marshall, acting director general of the British Chambers of Commerce. “The BoE must continue to keep a watchful eye on credit conditions, particularly for young and highgrowth businesses, who tend to be the very first frozen out of the financial system when conditions deteriorate.”

Bloomberg