Market news
07.11.2019, 12:48

BoE's Governor Carney: Recent Brexit deal creates a possibility of a pick up in UK growth

  • World risks slipping into low growth, low inflation but many of these dynamics occurred first in the UK 
  • Both reduced Brexit uncertainty and stronger world economy assumed in BoE forecasts, but neither is assured
  • Now evidence that households are doing precautionary saving before Brexit
  • Brexit uncertainties are weighing particularly heavily on business investment
  • Reduced chance of a no-deal Brexit has pushed up sterling
  • Brexit agreement reduces risk of no deal significantly
  • Pick up in UK growth likely to be limited by a lack of supply capacity in the economy
  • New BoE Brexit assumptions assume transition occurs over 3 years versus previous much longer transition 


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