Bank of England deputy governor Ben Broadbent has said policymakers had been too pessimistic about the immediate aftermath of the Brexit vote, but warned of an “insidious” threat to business investment. He defended the Bank against the accusation that its policy of ultra low interest rates was driving up pension deficits. In August the Bank announced measures to support the economy following the Brexit vote. Interest rates were cut to an all-time low of 0.25%, and the Bank increased its asset purchasing programme – quantitative easing – by £60bn to £435bn. “The decline in policy rates is a symptom not a cause of the forces shaping the global economy,” Broadbent said.

Source: The Guardian October 05, 2016 11:32 UTC