The Latest: Bank of England head ‘can’t protect from pain’

LONDON – The Latest on Britain’s vote to leave the European Union (all times local):

4:30 p.m.

The governor of the Bank of England warns that while the central bank is likely to act to help the economy, it will not on its own be able to protect Britain from economic pain.

Highlighting the uncertainties caused the vote to leave the European Union, Carney said in a speech Friday that “monetary policy cannot immediately or fully offset the economic implications of a large, negative shock.”

He said the bank “has identified the clouds on the horizon” and is likely to offer more monetary policy over the summer. But “one uncomfortable truth is that there are limits to what the Bank of England can do.”

Central bankers have increasingly called on governments to take more action to help their economies to create jobs and improve living standards.

The pound fell sharply on news that more monetary stimulus, which tends to weigh on a currency, is likely. It was down $1.3295 from $1.3429 before Carney’s comments.


4:15 p.m.

The head of the Bank of England says the uncertainty over Britain’s exit from the European Union means the central bank will likely have to provide monetary stimulus this summer.

In a speech delivered Thursday, Mark Carney said that “the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer.”

That could mean a cut to the benchmark interest rate, which is now at a record low of 0.5 per cent, or the injection of more money into the financial system.

Carney said that the Bank of England’s policymakers will assess the situation at their meeting July 14. They will prepare new economic forecasts and in August “we will also discuss further the range of instruments at our disposal.”


3:50 p.m.

Slovakian Finance Minister Peter Kazimir says the European Union needs to find “a new balance” following Britain’s decision to leave the bloc.

Kazimir, who will chair meetings of EU finance and economy ministers over the next six months, said Thursday it is vital there is “no revenge or hatred, just simple business and common sense.”

He said the EU split with the U.K., Europe’s second biggest economy, is “really sad,” adding that “we need the U.K. and the U.K. needs us.”

Likening it to a marriage breakdown, Kazimir said “you hope for the best, you get counselling, but even though, you end up getting divorced.”


2:25 p.m.

Poland’s President Andrzej Duda said the EU means different things for Britons, members of more than 40 years, and for Poles, who joined in 2004 and have seen the country modernize largely thanks to EU funds.

In an interview for the website, Duda said: “We feel the real benefits. o us the union means freedom, becoming richer, receiving funds.”

He commented as a poll showed 81 per cent of Poles want to remain in the EU.


2:05 p.m.

Germany’s Vice Chancellor Sigmar Gabriel says strong support for European Union membership among voters in Britain’s referendum suggests the country could rejoin the bloc at a later date.

On a visit to Greece Gabriel said: “There’s no doubt that young people proved to be wiser and smarter than the political leadership in Britain … My hope is that when it’s their turn to assume power and responsibility in Britain, there could be a return.”

The leave campaign won with 52 per cent pf the vote.

Gabriel insisted that the British vote to leave would not reduce the global importance of the EU, adding: “Europe will not be destroyed because Britain is leaving.”

“We Europeans have to understand that we need to help each other more,” he said.


2:00 p.m.

Slovak Foreign Minister Miroslav Lajcak says the European Union has no plans to open more membership talks with Turkey, after the two began negotiations on finance and budget issues.

Lajcak told reporters in Bratislava on Thursday that “there is no prospect for further chapters.” All aspiring EU members must complete negotiations with the EU in 35 policy areas, or chapters.

Lajcak, whose country takes over the reins of the EU’s rotating presidency on July 1, said that at the moment the EU and Turkey “differ over what chapters to open.”

The EU and Turkey officially opened the budget talks earlier on Thursday. The EU has offered Turkey fast-track membership talks and other incentives to convince Ankara to stop migrants reaching Europe.


1:55 p.m.

As the European Union reflects on a future without Britain, Slovakia’s Prime Minister Robert Fico says it’s time for big member states to stop taking decisions alone.

Fico said Thursday “the crucial decisions on the future of Europe cannot be defined by the decisions of one or two member states, or by the founding member states.”

His remarks were made to reporters as he laid out the aims of Slovakia’s six-month presidency of the EU, which starts on July 1.

Fico also says that EU nations should be leading decision-making and not the bloc’s institutions.

He says informal summits of EU leaders like the one being held in Bratislava in mid-September to deal with the fallout of the U.K. exit should be the way to go in the future.


1:35 p.m.

As videos, photos and written accounts of intolerant abuse percolate across the internet in the wake of Britain’s referendum to leave the European Union, Juan Jasso has become one of the country’s best-known victims.

The U.S. Army veteran is seen deflecting abuse as a British-sounding youth in a baseball cap, clutching a bottle of beer, screams expletives and demands that the immigrant get off the tram running through the northern city of Manchester.

The youth shouts: “Go back to Africa!”

“How old are you?” Jasso shouts back at one point. “I’ve been here longer than you have.”

The video, carrying nakedly aggressive racial abuse against a veteran, became among the most widely shared accounts of intolerance which have emerged since Thursday’s vote.


12:45 p.m.

Russian President Vladimir Putin has warned of lasting fallout from Britain’s vote to leave the European Union.

Putin previously deflected the allegations that it’s in Russia’s interests to have Britain, one of its fiercest critics, out of the EU.

Addressing Russian diplomats in Moscow on Thursday, Putin said the world will feel the “traumatic effect” from the out vote for a long time.

Putin would not say directly whether Russia would want Britain to follow through and leave the EU but added that “we shall see how they actually carry out democratic principles over there.”


12:40 p.m.

A survey shows that Poland remains enthusiastic for European Union membership with 81 per cent of those polled saying the nation should remain in the bloc.

The TNS polling centre held the telephone survey of 1,000 adults on Monday and Tuesday, a few days after Britons voted to leave the group. Poland’s conservative government is stressing the nation wants to remain an EU member.

Britain’s decision may have direct consequences to the hundreds of thousands of Poles who live and work in Britain, and to their families in Poland.

Thirteen per cent of respondents in the poll published Thursday said Poland should leave the EU and six per cent had no opinion. The margin of error was plus or minus 3.1 percentage points.


9 a.m.

France’s foreign minister says the EU should not negotiate eventual membership with Scotland while it is a member of the United Kingdom.

Ayrault said Thursday on France-2 television that “Europe should in no case contribute to the dismantling of nations.”

Voters in Scotland strongly backed remaining in the EU in last week’s British referendum, but were outvoted by a majority nationwide. Scottish First Minister Nicola Sturgeon, who has suggested a new referendum on Scottish independence, met with European Parliament and EU Commission officials in Brussels on Wednesday on the sidelines of an EU summit.

Ayrault insisted that “you have to respect the history” of each of the 28 EU member states and let the nations themselves decide on their futures, instead of holding negotiations with one region such as Scotland.


8:55 a.m.

British authorities say a London man has been arrested on suspicion of inciting racial hatred by detectives investigating extreme right-wing, anti-Islam and anti-Semitic postings on social media.

Scotland Yard said the 44-year-old was taken into custody Wednesday morning and later bailed.

Hate crimes and other intolerant acts have gained increasing prominence following Britain’s vote to leave the European Union.