Comments by BOE board member Ben Broadbent on CNBC
- Growth has been reasonably weak for the last two years
- Growth still strong enough to pressure wages
- UK wage growth is materially higher
- Seeing signs of domestic inflation pressure now
- Has seen intensification of drag on business investment, this is related to Brexit
- Outcome of Brexit could change outlook for UK economy materially
- Limited and gradual rate guidance doesn't mean one rate hike per year precisely
Despite the slight rebound in Q3 - which is expected to be one-off - the UK economy is expected to remain weak this quarter and into next year as Brexit uncertainty continues to weigh on businesses. With that sort of backdrop, the only thing that can save the pound from sinking to the doldrums now is a Brexit deal.
And even hopes of that is starting to fade now that Theresa May looks to be facing a setback from the UK parliament.
