BoE’s Lomax warns of impact of global imbalances

By Jamie Chisholm, Economics Reporter
Published: January 24 2006 13:40 | Last updated: January 24 2006 13:40

The US trade deficit and other large global economic imbalances carry “some risk of disruptive market adjustments” which could have “a significant impact on economic activity”, Bank of England deputy governor Rachel Lomax warned on Tuesday.

Speaking at a conference on Global Financial Imbalances, Ms Lomax said that although she felt the chances of disruptive adjustments occurring were low, their effect could be amplified if they included a rise in long-term interest rates to their long-run average.