September 16, 2016 / 10:30 AM / 3 years ago

Sterling slide since Brexit vote should ease UK current account deficit - BoE's Forbes

PARIS, Sept 16 (Reuters) - Sterling’s hefty slide since Britain voted to leave the European Union should significantly narrow the country’s current account deficit, Bank of England policymaker Kristin Forbes said on Friday.

Speaking at a conference in Paris, Forbes said sterling’s 10 percent fall against the dollar and the euro was leading to some automatic adjustments to Britain’s current account deficit, one of the largest of any advanced economy.

“Sterling’s depreciation should improve the UK’s net foreign asset position by over 20 percent of GDP. That’s a big improvement in the UK’s net international asset position and that should alleviate concerns by international investors about the UK’s ability to pay on its net foreign asset position,” she said.

Forbes, an external member of the BoE’s Monetary Policy Committee, was speaking at a conference on rethinking capital controls and capital flows hosted by SUERF, a forum for European central banks, regulators and academics. (Reporting by Leigh Thomas, writing by David Milliken; editing by Costas Pitas)

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