Carney speech: Worst-case Brexit scenarios now less severe than 2018

Eren Sengezer FXStreet

While testifying before the Treasury Committee as part of the Bank of England (BOE) inflation report hearings, Governor Mark Carney said that their worst-case Brexit scenario was less severe than last year's forecast and added that the worst-case Brexit outcome was now expected to cause a 5.5% drop in the real gross domestic product (GDP) compared to 8% previously estimated.

The GBP/USD pair largely ignored Carney's comments and is now consolidating its daily gains a little below the 1.22 handle, still adding around 100 pips on the day. Below are some additional quotes, per Reuters.

"BOE's assessments of Brexit with transition deal are unchanged from November scenarios."

"Worst-case Brexit scenario sees rise in unemployment to 7%, inflation peaking at 5.25%."

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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