BoE Governor Mark Carney noted both PM candidate, former foreign minister Boris Johnson and the current incumbent Jeremy Hunt had indicated that they wanted to reach a deal with EU on Brexit. Carney reiterated that BoE it would not factor in no-deal Brexit into its economic forecasts, unless the government changes its policy. He told the parliament that “in the event that the policy of the government were to switch, the forecast of the Bank of England would switch accordingly. Also, he noted again policy response to no-deal Brexit is not automatic. Nevertheless, it’s more likely for BoE to provide additional monetary accommodation in case of no-deal Brexit, then to tighten.
MPC member Michael Saunders warned that “a series of rolling deadlines would probably imply a heightened uncertainty and have a greater adverse affect on growth.” And, “now that is not a reason to do the things that business fear…, but the outlook for the economy would be very different if you knew now that there was going to be a smooth Brexit compared to one where you have a rolling series of deadlines and at each point there is the risk of a no-deal Brexit.”
