Rolling coverage of Mark Carney’s press conference, after he leaves interest rates unchanged and warns inflation will rise next year * Bank of England: What we learned * Carney: Not feeling political pressure * Carney: Article 50 court ruling is sign of Brexit uncertainty * Mark Carney’s press conference highlights start here * Bank of England leaves rates on hold * Inflation expected to crash over target in 2017 2.34pm GMT THE TUC IS ALSO WORRIED THAT HOUSEHOLDS FACE A SEVERE WAGE SQUEEZE NEXT YEAR, AS THE WEAKER POUND DRIVES UP INFLATION. TUC General Secretary FRANCES O’GRADY fears Britain can’t afford a second dose of falling real wages (as seems possible, if companies don’t provide inflation-busting pay rises). “The Bank’s warning must spur the government into action so that workers don’t pay the price of Brexit with a squeeze on wages. “UK workers already suffered the largest fall in real wages after the financial crisis of any developed country except Greece – they can’t afford another hit to their pay packets. 2.25pm GMT IAN KERNOHAN, ECONOMIST AT ROYAL LONDON ASSET MANAGEMENT, AGREES WITH MARK CARNEY THAT HOUSEHOLDS ARE GOING TO FIND LIFE TOUGHER NEXT YEAR, AS BREXIT UNCERTAINTY CONTINUES TO SWIRL. He says: GDP growth is likely to slow next year, on the back of a squeeze in real household incomes and ongoing Brexit uncertainty.” Continue reading...
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