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  • 7 weeks ago
The conflict in Iran is creating economic uncertainty, according to the Governor of the Bank of England Andrew Bailey. His comments came as the Bank voted to hold interest rates at 3.75 per cent. Report by Johals. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Transcript
00:00Three months ago when we did the last of these March Posse reports, before the conflict broke out,
00:05I was pretty confident, frankly, that I thought we would cut rates this year.
00:09I don't think that's going to happen now.
00:13We've taken a very conscious and deliberate decision to hold rates today.
00:17We think that's the best thing to do today.
00:19But the range of unpredictability and uncertainty is very high.
00:25And that's over how long it will go on for all these events,
00:28what will be the peak impact and over time what will be the impact off them.
00:33And frankly, it's very hard to know.
00:34Now, we've looked at a range of scenarios.
00:39There are some scenarios where partly because we're taking out the cuts
00:43that we were sort of thought to be expected to be making this year
00:46does in its own right tighten policy.
00:49That will give us enough traction, if you like, to sort of be able to be confident
00:53we can bring inflation back to target.
00:55But there are some bad scenarios in which that is not the case.
00:59And I think we would have to say, you know, we're going to have to raise rates.
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