BoE of­fi­cial: Paris at­tacks un­likely to have much im­pact on UK or global econ­omy

Kuwait Times - - BUSINESS -

LON­DON: The at­tacks in Paris are un­likely to have a sig­nif­i­cant im­pact on the Bri­tish or global econ­omy, a Bank of Eng­land pol­i­cy­maker was quoted yes­ter­day as say­ing. Don Kohn, a mem­ber of the BoE’s Fi­nan­cial Pol­icy Com­mit­tee, said the ef­fects of the Nov. 13 at­tacks by mil­i­tant Is­lamists, which killed 130 peo­ple, re­mained un­clear but that sim­i­lar in­ci­dents in the past had not had a big eco­nomic im­pact.

“Un­for­tu­nately th­ese things have hap­pened pe­ri­od­i­cally but for the most part they have left a small im­print on the econ­omy,” Kohn told the Kent Mes­sen­ger news­pa­per dur­ing a visit to busi­nesses in the county of Kent in south-east Eng­land. “Economies have proven re­silient to th­ese ter­ri­ble threats. My hope and ex­pec­ta­tion is the UK and global econ­omy will con­tinue to be re­silient to this kind of violence.” How­ever, he added that such at­tacks in­creased un­cer­tainty. Bank of Eng­land deputy gov­er­nor Ben Broad­bent made a sim­i­lar point af­ter a speech at Thom­son Reuters last week.

Kohn also said he was watch­ing Bri­tish house prices, which are start­ing to pick up speed again af­ter a hia­tus in the lat­ter part of 2014 due to tighter mort­gage reg­u­la­tion. “Our goal is not to con­strain lend­ing but to make sure the lend­ing terms don’t de­te­ri­o­rate and get so loose un­der the pres­sure of ris­ing house prices that there are prob­lems com­ing down the road which would af­fect the sta­bil­ity of the sys­tem.” Sur­veys from mort­gage lenders Na­tion­wide and Hal­i­fax showed house prices picked up more strongly than ex­pected in Oc­to­ber. In Septem­ber the FPC said it ex­pected house price in­fla­tion to pick up and that it would closely mon­i­tor Bri­tain’s so-called buy-to-let mar­ket, dom­i­nated by small land­lords. — Reuters

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