The geopolitical situation remains difficult and global economic conditions deteriorated, Bank of England Governor Mark Carney said at the Treasury Select Committee hearing on Tuesday.
The combination of geopolitical situation and weak global growth suggests a heightened degree of external risks to the U.K., Carney said.
Ian McCafferty, external member of MPC said the weakness in global growth and the faltering recovery in Eurozone suggest that it would hit the U.K. through not only through trade channel but also financial market volatility.
If the decline in global oil and commodity prices were to persist, it would provide a boost to global activity, McCafferty said.
At the monetary policy meeting, McCafferty continuously voted since August to raise the key interest rate by a quarter point from a record low 0.50 percent.
Policymaker Kristin Forbes said the biggest risks that she worry about today are external.
With greater scope for tightening policy than for loosening, Jon Cunliffe, Deputy Governor for Financial Stability said he is more worried about the downside risks to inflation at the moment
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