BOE’s Carney sees slower UK economic growth on a Brexit no-deal

Bank of England governor speaking to ITV earlier this morning 5 Nov

  • UK business investment should be booming now, given the strength of the world economy and other factors, but it is just growing instead

  • this is because of the uncertainty about the outcome of the Brexit negotiations

«In the short term, without question, if we have materially less access (to the EU’s single market) than we have now, this economy is going to need to reorient and during that period of time it will weigh on growth»

  • possible that in the event of a bad Brexit deal, the BoE would not be able to cut interest rates in future because of inflationary pressure.

Nothing of real note here but Carney does highlight again the dangers of a Brexit no-deal and the lack of wiggle room he still has even with a 0.25% rate hike last week so further hike opportunity might suit the Old Lady as a precautionary measure.
The take-away? Evenly balanced imho.
                 Carney- Slower growth on no-deal but inflation potentially still a concern
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