Search AP News:
Jan 16, 3:39 PM EST

Bank of England Governor: Bank will protect economic growth



Photo Gallery
Animal census at the London Zoo
Latest News from Britain
Bank of England Governor: Bank will protect economic growth

Piccadilly Circus signboard goes dark for digital overhaul

UK leader Theresa May to appear in US Vogue magazine

Bottle of whisky signed by Trump fetches $7,334 at auction

Lord Snowdon, ex-husband of Princess Margaret, dies at 86

German ministers to hold 1st Brexit meeting Wednesday

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
Bank of England Governor: Bank will protect economic growth

IMF boosts growth forecast for US, cites Trump impact

More pay, greater confidence lifts US retail sales 0.6 pct.

German finance minister resists pressure for quick tax cuts

Bank of Korea cuts growth outlook as scandal hits economy

Mexico president tries again to calm anger over gas hike

ECB extended stimulus as 'steady hand' in turbulent year

Erdogan says Turkish economy also under 'terror' attack

Puerto Ricans to see lower power bills amid economic crisis

World Bank forecasting brighter prospects for 2017

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt

LONDON (AP) -- The Bank of England remains ready to protect economic growth in the face of pressures caused by Britain's departure from the European Union, the central bank's top executive said Monday as investors waited for the country's prime minister to lay out her vision for Brexit.

The bank's Monetary Policy Committee has the discretion to balance its legally mandated goal of controlling inflation against the need for economic stability, Governor Mark Carney said in a speech at the London School of Economics.

"In exceptional circumstances, trade-offs between real stability and inflation can arise that monetary policy is required to balance," Carney said. "This is now the case, given the decision of the people of the United Kingdom to leave the EU."

His remarks, delivered as British Prime Minister Theresa May prepares to deliver her own speech Tuesday setting out her Brexit blueprint, suggest the bank is ready to act to stave off economic uncertainty.

Under pressure to reveal her plans for negotiating with the EU, May is expected to call for a "truly global Britain" that is more open to the world.

But reports in major newspapers over the weekend indicated that May plans a clean break with the 28-nation bloc, which sent the pound tumbling Monday on concern about how the withdrawal would affect trade, investment and economic growth.

The pound has lost almost a fifth of its value against the dollar since British voters in July approved a referendum to leave the EU.

Despite concerns about inflation, the Bank of England in August reduced its benchmark interest rate by 0.25 percent and increased asset purchases to ease concerns about the vote.

The bank's actions helped prevent a slowdown in the economy that would have cost about 250,000 jobs, Carney said Monday.

"There remains an element of discretion in how the (Monetary Policy Committee) delivers its inflation objective," he said. "That is because the people of the U.K. also have reason to value stable growth, jobs and incomes."

With the government preparing to open formal exit talks with the EU by the end of March, the bank is prepared to respond.

"Whatever transpires, the MPC will manage monetary policy to achieve the inflation target in a sustainable manner consistent with the preferences and instructions of the people of the United Kingdom," Carney said.

© 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.