BoE's Carney suggested the FOMC may have moved rates to neutral
BoE's Carney suggested the FOMC may have moved rates to neutral, in comments alongside BoJ's Kuroda from a Davos panel on crisis prevention. He added that the pace of tightening has been rather typical. Looking internally, he said the BoE's Brexit forecasts have been borne out by the data he said. The Bank has been preparing for the event since 2016, and is ready for whatever form the divorce takes, either via conventional or unconventional policies. Meanwhile, banks have been building up its capital buffers and have about three times as much capital it did before the financial crisis. But, he warned UK businesses have been doing what they can, but in many ways can't really prepare for no-deal outcome. It's not automatic which way rates will break on a hard Brexit. There's no magic level of rates the BoE is trying to return to.