Further comments by Carney
- Also shouldn't prepare for a scenario of a rate cut
- No-deal Brexit is not the most likely scenario, but probability has gone up
- If there is a Brexit deal, forecast is to have inflation above target and staying there
- Hopes BOE will have material information on Brexit by May (time of next forecasts)
In short, it's still very much the status quo here by the BOE. Despite the negative forecasts and the emphasis on Brexit uncertainty, markets aren't wrong to still view it being a 'one-and-done' case if Brexit proceeds smoothly.
Cable is very much back in demand territory now as it rises back above 1.2900 to 1.2920 levels currently.
