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BOE’s Brexit Policy Response Won’t Be Automatic, Carney Says
2019-07-02 14:05:00.12 GMT

By Catherine Bosley
(Bloomberg) — “While the MPC would do what it could to
support the economy in the event of No Deal, I would underscore
the MPC’s caution that the response of monetary policy to Brexit
will not be automatic,” according to Bank of England Governor
Mark Carney.
* Says any BOE action will depend on the impact on supply,
demand and the exchange rate
* Notes market view of Brexit outcomes and its impact on BOE
rate outlook
** Pricing increasingly inconsistent with MPC’s projections, but
that doesn’t mean market wrong, MPC right about likely outcome
of talks
** “It just highlights the extent to which the levels of
interest rates, sterling and other asset prices might increase
if a deal were reached. The MPC will explore how best to
illustrate these sensitivities as we update our projections for
the August Inflation Report”
* NOTE: Johnson Plans to Show Tory Rebels Some Love: Brexit
Update

To contact the reporter on this story:
Catherine Bosley in Zurich at cbosley1@bloomberg.net
To contact the editor responsible for this story:
Fergal O'Brien at fobrien@bloomberg.net