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Ben Broadbent said: The central projection in the August Inflation Report didn’t involve a recession, simply a slowing in the economy’s rate of growth. But that slowing looks so far to have been more moderate than we feared.
More evidence that the economy is ticking along nicely can be seen in the IHS Markit / CIPS purchasing managers index for services. Services PMI fell to 52.6 in September from 52.9 in August. Anything over 50 represents an expansion in economic activity.
So is the panic over?
Well not quite. Broadbent said that Brexit will cause companies to delay investing in risky, long-term projects.
Brexit uncertainty could also lead firms to postpone hiring decisions.
The deputy governor said: "Permanent appointments do involve at least some degree of commitment and therefore might be susceptible to changes in uncertainty."
Full article on Financial News
Uncertain times - speech by Ben Broadbent