A slightly hawkish, but largely dull,...........>

BOE: A slightly hawkish, but largely dull, Inflation Report with the BoE's main

message that we should wait to see the Brexit deal before making any big

decisions.

- The Inflation Report includes a section on Brexit outcomes, including sterling

in different Brexit scenarios, albeit they are largely stating the obvious:

"In the case of a smooth transition to a relationship that is judged to have a

relatively small long-term economic impact, financial market participants might

expect a smaller hit to UK real incomes than currently, causing the exchange

rate to appreciate. In contrast, a disruptive withdrawal from the EU could

result in a more pessimistic view and some further depreciation."

- The BoE were keen to not rule any policy responses out in different Brexit

scenarios.

- Carney in the Q&A did also point to the fact that the inflation forecast is a

little above target in year two, suggesting there is room for markets to price

in a more hawkish path.