The BOE MPC inflation report testimony continues 15 Nov
- long run effect of Brexit is likely to be weaker potential growth, according to IMF
Shafik:
- MPC taking a neutral stance on Brexit impact
- will review when we have greater clarity
McCafferty:
- projections for the UK economy are uncertain, leaving future path on interest rates unclear
- period of Brexit transition likely to be associated with reduction in productivity
Carney:
- we are in close contact with EU CBs and regulators to plan for contingencies and ensure smooth Brexit
All MPC members being cautious/careful not to get tripped up by their inquisitors
GBPUSD lower again at 1.2401 in general USD-demand that also sees EURUSD retreat to 1.0776. Expect some support/demand nearby.
