U.K. rate-setter: Rates may be cut to zero in no-deal Brexit
British Union flags fly in front of The Houses of Parliament in London, Tuesday, Jan. 22, 2019. (AP Photo/Frank Augstein)
The Associated Press
Published Friday, July 12, 2019 4:57AM EDT
LONDON -- One of the Bank of England's nine monetary policymakers says it's "more likely" that he will vote to slash the bank's main interest rate to zero if the country leaves the European Union without a deal, to smooth its path to any future relationship.
In a speech Friday, Gertjan Vlieghe also said it would be "highly uncertain" when he would want to reverse that cut, as that would depend on how long it would take the British economy to recover from the shock of a no-deal Brexit and how far inflation rises following a fall in the pound and the imposition of tariffs on trade between Britain and the EU.
The bank's main interest rate currently stands at 0.75%.
Most economists think Britain would sink into recession in a no-deal Brexit.