++CLIENTS NOTE THERE ARE BLACK FRAMES IN BETWEEN SOUNDBITES++
London - 3 November 2016
1. Various of Bank of England Governor Mark Carney arriving at news conference
2. SOUNDBITE (English) Mark Carney, Bank of England Governor:
"Given the projected rise in unemployment, the risk around activity and inflation, and the potential for further volatility in asset prices, the MPC (Monetary Policy Committee) judges it appropriate to accommodate a period of above target inflation. That notwithstanding the MPC is monitoring closely the evolution of inflation expectation. In light of these developments, the MPC in its November meeting agreed unanimously that the bank rate should be maintained at its current level and it also agreed unanimously to continue the previously announced asset purchase programmes."
3. SOUNDBITE (English) Mark Carney, Bank of England Governor:
"Since August, demand growth has been materially better than expected and the MPC now projects the level of GDP to be 0.7 percentage points higher than by the end of this year. So what did we miss and what have we learnt about the adjustment to Brexit?"
4.SOUNDBITE (English) Mark Carney, Bank of England Governor:
"The MPC had expected in August that consumption would continue to grow slowly throughout the remainder of this year. But consumption has been even stronger with households appearing to entirely look through Brexit related uncertainties. For households, the signs of economic slowdown are notable by their absence. Perceptions of job security remain strong, wages are also growing at around the same modest pace as at the start of the year. Credit is available and competitive and confidence is solvent."
5. SOUNDBITE (English) Mark Carney, Bank of England Governor:
"The final difference is that business investment appears to be somewhat less soft than we had expected. In part because of those easier financial conditions and in part because domestic demand and uncertainty appears to have exerted a bit less of a drag than we had expected."
6. SOUNDBITE (English) Mark Carney, Bank of England Governor:
"While the committee now expects stronger growth through the balance of the year, it is the fall in sterling that will have more significant implications for the path of inflation at the monetary policy horizon. It is early days in the adjustment process. Households, firms, financial markets and, yes, the MPC, will continue to learn as they go and they will adjust their expectations accordingly. The limited post-referendum data we have seen so far suggests that households could behave more adaptably, reacting to changes in jobs and incomes they actually experience rather than those in prospect."
The Bank of England revised up its growth forecasts for the British economy for this year and next as it opted against another interest rate reduction in the wake of the country's decision to leave the European Union.
Conceding that its earlier predictions over the immediate impact on growth stemming from the Brexit vote were too gloomy, the bank's policymaking Monetary Policy Committee kept its main interest rate at a record low 0.25 percent.
The announcement was widely expected following recent figures showing that Britain's economy grew by a forecast-busting quarterly rate of 0.5 percent in the July-September period and signs of a marked pick-up in inflation.
Growth has been stronger than many economists, including forecasters at the Bank of England, had anticipated.
Analysts feared growth would slow after the June 23 vote to leave the EU, a decision which spurred the bank to cut rates and expand its economic stimulus programme in August.