Carney Warns Protectionism Could Hit Global Growth

(Bloomberg) -- Bank of England Governor Mark Carney says increasing protectionism is “concerning” and could diminish the strength of the global economy.

Speaking at a press conference in London following the publication of the BOE’s Financial Stability Report, Carney said that officials are looking closely at potential spillovers arising from escalating trade tensions.

“The question is the extent to which these measures start to affect business confidence. You have a negative affect for example on business investment. And to what extent it’s possible for broader risk-off attitude or adjustment to risk appetite in financial markets.”

Carney added he believes the “strict mechanical impact” of tariffs being put in place is manageable and that actions taken in the wake of the financial crisis have given banks a liquidity position to mitigate the risks. Still, he warned that the fact concerns were being raised was indicative of the “potential seriousness and knock-on of trade negotiations.”

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, David Goodman, Fergal O'Brien

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