Published On: Mon, Feb 12th, 2018

Brexit news: LBC host shuts down BoE official over ‘gloomy’ Brexit forecasts | UK | News


The presenter roasted Mr McCafferty after the economist was forced to admit the Bank of England had “overestimated” the impact would have on the British economy.

Before the Brexit referendum, the Bank of England warned that Britain would be plunged into recession after a Leave vote and that leaving the EU represented the “biggest domestic risk” to the UK economy.

Mr Dale said: “Do you not accept that there’s been a bit too much gloom and doom from the Bank of England?

“Today, there’s a story in one of the papers that ‘Brexit wiped out £7.7billion of investments, says Bank of England’. No mention of course that there have been record-levels of direct investment from overseas into this country.

“The FinTech industry, record levels of investment. CitiGroup yesterday saying they are opening a new technology department in the City of London.

“Yet all we ever get from the Bank of England is gloom and doom.”

All nine members of the Bank of England’s Monetary Policy Committee (MPC) voted to keep interest rates on hold last week, but the announcement was accompanied by news that the rates are expected to rise “earlier” and by a “somewhat greater extent” than what was predicted in November.

Mr McCafferty told the LBC Radio presenter: “No, it’s not all gloom and doom. That’s not what we have said in our forecasts. 

“We would normally expect at this time in the economic cycle, given the strong growth that we’re now seeing throughout the world – 75% of the world’s countries are now performing above their underlying potential. We are in the process of seeing a real pick-up in the Global economy.

“Given the very supportive monetary conditions which are still in place across the piece and the growth in confidence, you’d normally expect to see business investment growing by double-digit growth per annum. We’re currently growing at about 4 percent.”

The British economy expanded by a surprisingly strong 0.5 percent at the end of 2017, up from 0.4% in the third quarter, although the Bank said it is expected to slip slightly back to 0.4 percent in the first quarter of 2018.

The BofE said Brexit talks remain the “most significant influence on, and source of uncertainty, about the economic outlook”.



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