Governor of the Bank of England Says Brexit has Hampered Growth

Mark Carney, the Governor of the Bank of England, has warned that business investment has slowed due to Brexit. His comments come as the bank has cuts its growth expectation for the UK economy from 1.9% to 1.7%.

Carney said:

“Businesses have …. since the referendum invested much less aggressively than usual in response to an otherwise very favourable environment.”

Carney added that Brexit was also having an effect on wage growth, saying:

“There is an element of Brexit uncertainty which is affecting the wage bargaining. Some firms, potentially a material number of firms, are less willing to give bigger pay rises given that it is not as clear what their market access is going to be over the course of the next few years”.