Philip Hammond, the newly appointed Chancellor of the United Kingdom of the board, said the vote to leave EU had "undermined trust" and will take "all measures" necessary to support the UK economy.
"the number one challenge is to stabilize the economy, send signals of confidence about the future, the plans we have for the future market, businesses, international investors," Hammond told Sky News in an interview Thursday.
Hammond's comments came ahead of a meeting later the same day the Bank of England policymakers will debate whether to reduce the interest rate for the first time since 09. the bank governor Mark Carney seeks to avert further turmoil after the pound plunged and consumer confidence dropped to a low of 21 years after the last month's decision to leave the EU.
the chancellor, appointed Wednesday by the new Prime Minister of the United Kingdom, Theresa May, Carney will meet Thursday morning "to make an assessment of where the economy is , "he said in an interview with BBC TV. He added:
Business Uncertainty
In that "I think the governor of the Bank of England is doing a great job." which could be a first attempt to place the blame for a downturn in the economy with its pro-Brexit colleagues, Hammond said that the prospect of EU negotiations was hurt confidence. "If there is something that is damaging to our economy right now, there is uncertainty for business," he told the BBC.
Hammond said he was confident the financial district of London would Brexit weather. "In the short term, the city of London is very strong," he told the BBC. "It is a very complex network of markets and related industries, legal, and business services. It is not so easy for anywhere else to put in place a credible alternative to the density of financial services and support services in the city of London. "
However, he urged newly appointed secretary David Davis Brexit to get as much access to EU markets as possible . "We need to make in our negotiations with the European Union, we have clearly in mind the need to ensure access to the European single market for our industries Financial Services in London," he said. "This is not only in the interest of London. It is in the EU's interest"
Hammond, who was foreign minister of the United Kingdom in 2014, would not comment on the plan of his predecessor George Osborne to reduce the corporate tax rate to 15 percent and ruled in providing emergency budget. He said he delivers autumn statement "in the normal way."
The low demand
Before his time in government, as part of the team of Cameron opposition finance, Hammond played a role in the development of Osborne's austerity plan led to speculation among economists, it may be more of a fiscal hawk may.
"as a best estimate, we will likely see a compromise," said Pickering Kallum, economist at Berenberg Bank. "Fiscal policy in the short term Looser while demand is weak with major cuts pushed to the back of predicting when economic growth is likely to improve."
Hammond reported that the deficit may be less of a priority. "We need to reduce the deficit further," he said. "But looking at how, when and at what rate we do, and how we measure our progress in doing this, is something we have now to consider in the light of new circumstances the economy is facing."
Bloomberg
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