Bank of England Has Played its Part; Now It’s Up to Theresa May to Introduce Fiscal Stimulus

Britain’s vote to leave the European Union has caused economic uncertainty that must be tackled with both monetary and fiscal policies to boost demand, according to an editorial in the South China Morning Post. So far the effect of Brexit on the world economy, and therefore on Hong Kong’s outward-looking economy, has been limited, the editorial says. But whether it remains so could depend on the government’s fiscal response to the Bank of England package. “The Bank of England has bought [Prime Minister Theresa] May time before the government’s traditional autumn spending statement. She needs to make good use of it to craft complementary, targeted fiscal stimulus to prop up demand,” the newspaper says.