Carney’s speech: BOE forecasts do not include no-deal Brexit risk which is priced into market interest rate forecasts, GBP unmoved
|The Bank of England (BOE) Governor Mark Carney is on the wires now, via Reuters, testifying on the on inflation and the economic outlook before the UK Parliament's Treasury Committee (TSC).
Key Headlines:
BOE forecasts do not include no-deal Brexit risk which is priced into market interest rate forecasts.
Risk of no-deal Brexit has pushed down market path for interest rates.
If there is progress towards a Brexit deal, current BOE forecast will be "very relevant".
BOE will change its forecasts if government's official Brexit policy changes.
Response in rates not automatic if there is no deal.
More likely provide stimulus than tighten policy after no deal.
No-deal Brexit is not the plan 'A' of either leading contender to succeed May as PM.
UK monetary policy has not become politicized.
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