Carney Q&A Con't.: Q: Is monetary policy in.....>

BOE: Carney Q&A Con't.: Q: Is monetary policy in the UK now aligned with the

Federal Reserve and ECB?

- A: No. UK is in unique position with large issue of Brexit. This is effecting

UK in material way and therefore impacts monetary policy assumptions and BoE

forecasts. Historically, there's been tight correlation between Fed and BoE

rates. That hasn't held post-referendum. Bank distinguishes between today's R*

and medium-term R* (difference reflects uncertainty and risk premia). As that

uncertainty fades, neutral rate should move higher, closing gap between

medium-term R* and today's R*. The Fed and ECB do not face this issue.

- Q: If forecasts are correct, more hikes may be needed than curve currently

implies. How does this square with current Brexit deadlines?

- A: Doesn't really answer question... Refers to forecasts.

[PRESS CONFERENCE ENDS]