Carney speech: No-deal would be an instantaneous shock to both supply and demand

Eren Sengezer FXStreet

Following the Bank of England's decision to keep its policy rate unchanged at 0.75%, Governor Mark Carney is responding to questions from the press. Below are some key quotes as reported by Reuters.

"No-deal would be an instantaneous shock to both supply and demand."

"Cannot simply say that rates will go one way in the event of a Brexit deal, and another after no-deal."

"If you strip out markets' no-deal Brexit risk, rate expectations are roughly where we would expect."

Bank of England lowers 2019 GDP growth forecast to 1.3% from 1.5% in May.

According to the updated economic projections in the Quarterly Inflation Report, the Bank of England forecasts the economy to expand by 1.3% in 2019, compared to 1.5% reported in May's publication.

GBP/USD off 2-1/2 year lows, still in the red post-BoE.

The GBP/USD pair held on to its weaker tone post-BoE, albeit has managed to recover around 15-20 pips from an early dip to sub-1.2100 level.

About Mark Carney

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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