Plunging Pound is a “shock absorber” says BoE deputy
Published: Monday 17 October 2016
Bank of England deputy governor Ben Broadbent spoke on BBC radio 5 lives this morning and stated the recent fall in Sterling has acted as a ‘shock absorber’ for the economy. He told BBC Radio 5 live that having a flexible currency was "extremely important" to cope with shocks.
He added the Bank would not intervene to boost the Pound's value after Sterling has now fallen nearly 20% against the Dollar since the referendum. Bank governor Mark Carney said on Friday that Sterling's weakness would lead to higher prices, a finding that has since been underlined in a report released by Ernst and young.
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