Boost for Brits as 'Mr Doom' Mark Carney makes Brexit backtrack as it is claimed economy will grow faster than first forecast
BANK of England boss Mark Carney declared Britain will cope with Brexit — as it was claimed the economy will grow faster than forecast this year.
The governor said the nation’s “flexibility and dynamism” would help it adjust to changes in the relationship with Europe.
He spoke out as the International Monetary Fund said Britain was performing better than expected after last June’s Brexit vote.
The IMF expects the economy to grow 1.5 per cent this year, the same as Germany’s.
The 0.4 per cent jump on its forecast last October was mostly on account of better-than-expected performance late last year, it said.
Separately, Mr Carney said: “Households appear to be entirely looking through Brexit-related uncertainties.
“The saving rate has fallen towards its pre-crisis lows, and consumer borrowing has accelerated notably.”
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4Mr Carney, blasted for his “Project Fear” comments over Brexit, spoke of recent signs of “solid consumer momentum” at home and a better outlook for global growth.
In a speech in London yesterday, he said the UK was ready and able to deal with Brexit. He said: “The flexibility and dynamism of this economy will help it adjust as its relationship with the EU becomes clearer and new opportunities with the rest of the world open up.”
Mr Carney said interest rates could go either way depending on the how the economy fares, although analysts interpreted his speech as an indication it will remain at 0.25 per cent for the rest of 2017 and beyond.
He defended rising prices, saying a little inflation “greases the wheels” of the economy.
Inflation hit 1.2 per cent in November. The Bank’s target is for 2 per cent.
Prices are due to rise this year due to the weak Pound pushing up import costs. Yesterday, it hit a 31-year low against the US dollar.
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