The rapid fall in the value of the British pound has acted as an “important shock absorber” for the economy after the UK’s vote to withdraw from the EU, said Ben Broadbent, the deputy governor for monetary policy at the Bank of England. At the same time, he said, there are negative consequences to a weak pound, including the likelihood that it will send inflation above the central bank’s 2% target.
Market News International (17 Oct.),
