UK will hike rates faster if Brexit is smooth

LONDON • The Bank of England said it may need to raise interest rates faster than the market suggests, assuming that Brexit goes well, its Monetary Policy Committee (MPC) said yesterday.

While it did not say what deal would be best for Britain, its latest forecasts are based on the assumption that the adjustment to a new relationship with the European Union is "smooth".

That means avoiding the so-called cliff edge where Britain leaves after the two-year negotiation period without transitional arrangements in place.

The MPC panel kept the benchmark interest rate at a record-low 0.25 per cent. In a quarterly update, officials cut their forecast for growth this year to 1.9 per cent from 2 per cent.

BLOOMBERG

Firm aims to fix Boeing engine glitch in weeks

VILLAROCHE • The head of Safran's aircraft engines division said his firm aimed to fix a Boeing plane engine glitch within weeks, after Boeing had to suspend test flights on a flagship new aircraft.

Boeing said on Wednesday it had halted test flights of its new 737 MAX aircraft due to an issue with the engine, made by Safran-GE joint-venture CFM International.

Boeing uses a version of the engine called Leap-1B.

The suspension came after Safran discovered a quality problem in turbine discs provided by one of two suppliers, and it is not related to the part's design, Safran Aircraft Engines chief executive Olivier Andries said.

Boeing's test flight halt comes days before it is due to deliver its first 737 MAX to Malaysia's Malindo Air.

REUTERS