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01 October 2019
ECONOMY

UK’s Javid pledges major policy response to a no-deal Brexit

Talk of a Bank of England (BOE) interest-rate cut has increased since late last week, when policy maker Michael Saunders said Brexit uncertainties are likely to keep depressing growth, adding that the central bank may have to cut rates even if the UK avoids a no-deal outcome.

SAJID JAVID, THE UK CHANCELLOR OF THE EXCHEQUER/BLOOMBERG


UK Chancellor of the Exchequer Sajid Javid is pledging a major fiscal response if Britain leaves the European Union without a deal, reported Bloomberg.

Javid said he’s looking at ways to help the economy and indicated he expects the BOE would also assess the need for monetary support—though he noted that would be a decision for policymakers at the central bank.

“If it was no deal, there would be a significant economic policy response, the independent Bank of England will almost certainly think about a monetary policy response, and that is for them, but I will be thinking about a fiscal and other economic policy response,” said Javid.

Asked about the cost to the economy, Javid said there would be challenges, adding that no one really knows the full proper answer to that question because the analysis hasn’t taken into account the potential response of the Treasury and the BOE.


RELATED STORIES: UK CHANCELLOR OF THE EXCHEQUER EUROPEAN UNION NO-DEAL BREXIT BANK OF ENGLAND


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