BoE's Vlieghe: An easing or extended pause in policy is more likely in a no-deal Brexit scenario

BoE external MPC Member Gertjan Vlieghe, speaking about the economic outlook and monetary policy at the Resolution Foundation in London, was noted saying that around 25bps rate hike a year is the reasonable central case if Brexit deal is done.

The degree of future monetary tightening will in part depend on how large Sterling appreciates after a Brexit deal and in case of a no-deal Brexit scenario, an easing or extended pause in monetary policy is more likely to be appropriate than tightening, Vlieghe added further.

Additional quotes:

   •  There is considerable uncertainty around my forecast for policy rate path.
   •  Signs of an economic slowdown in early 2019 means a lot needs to go right for this forecast to come to pass. 
   •  I can probably wait for evidence of growth stabilizing, inflation pressure rising before considering a rate hike.

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