Carney Q&A: 1st Question: Given forecasts, in...>

BOE: Carney Q&A: 1st Question: Given forecasts, in normal circumstances we would

expect tightening. Assuming smooth Brexit what can we read into 'limited and

gradual'?

- A: If our forecasts are correct, even though we're going through uncertainty,

that resolution will require rate increases over medium-term and will require

more frequent rate increases than market currently expects.

- Carney: Insufficient hikes priced into the curve given our current remit

- Q: Explain justification for condition assumptions given Brexit has not

followed smooth path so far?

- A: Wouldn't agree, parliament voted against No Deal Brexit. Parliament

expressed clear opinion in favour of smooth Brexit.

- Carney: Notes unusual scenario of broad economic expansion while business

investment is falling. That, and Brexit, could prompt short-term volatility in

hard and soft economic data.