Brexit ‘surprises’ could delay rate hikes, IMF says
If negotiations affect wage growth or “depress demand”, the BoE could make monetary policy more expansionary, staff say
The Bank of England’s monetary policy plans could be disrupted should “negative surprises” emerge from the Brexit negotiations, the International Monetary Fund has warned.
In their latest health check of the UK economy, IMF staff say if Brexit negotiations “depress domestic demand and affect firms’ willingness to raise wage growth”, planned interest rate hikes could be delayed.
“Monetary policy could be made more expansionary if needed,” staff say. “Transparent and timely communication will
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