BOE's Carney says UK economy is operating just below potential
Comments from Carney:
- Surveys point to economy stagnating in Q3
- After no-deal Brexit it would be more likely to ease policy than not
- "Limited and gradual" interest rate increases likely to be needed if there's a Brexit deal
- Underlying UK growth is likely positive but muted
- US dollar dominance of financial system increases risks of a global liquidity trap
- Reducing dollar spillovers should be long-term goal
- Calls for a multi-polar reserve currency system
- Weak business investment is biggest UK headwind
- Synthetic hegemonic currency could dampen domineering influence of the US dollar on global trade
- Full speech
He's calling for a Libra-like currency to the end the dollar's dominance. That's a good idea, I just don't think the US would ever allow it.
In terms of monetary policy, I would have expected something more dovish given that other central banks are cutting.