UK rate cut could come soon, Bank of England chief hints

LONDON (AP) — United Kingdom (UK) interest rates could be cut soon to shore up an economy that’s barely growing even as some Brexit uncertainty has dissipated, the Bank of England’s outgoing chief hinted on Thursday.

Mark Carney said in a speech that there is a “debate” within the bank’s rate-setting Monetary Policy Committee “over the relative merits of near term stimulus to reinforce the expected recovery in UK growth and inflation.”

The bank is predicting an economic pick-up as some of the risks associated with Brexit have disappeared in the wake of last month’s election victory by Boris Johnson’s Conservatives. His big win has eliminated any near-term fears that Britain would leave the EU without a withdrawal agreement to smooth its exit from the bloc.

Governor of the Bank of England Mark Carney. PHOTO: AFP