Carney into the Q&A
Exchange rate moves have been driven by the markets view on Brexit
BOE cannot influence the markets perception of UK Brexit prospects
Main reason for fall in pound is judgements about the real economy in the market
The question was on quantifying when the BOE would act if it saw inflation rising. He gave it a big swerve with the answer.
- Ruling on art50 is an example of uncertainty on Brexit
- Uncertainty will bear down on business investment and will build with time
- Sees very modest real income growth for households over next year and into 2018
- We have not changed our assumption about the type of Brexit the UK will have
- It's too soon to reach a firm judgement about what type of Brexit the UK will have
- Financial markets have made much bigger changes to their views on Brexit than BOE
