### - POV - Last week's disappointment in.....>

CABLE: ### - POV - Last week's disappointment in the BOE MPC's rate path, no

near term hike expected but two more seen in the next three years, has turned

attention full on to Brexit negotiations, note comments in today's Daily

Telegraph from BOE Carney suggests that Britain would be booming if it wasn't

for Brexit. Carney's ongoing comments on Brexit would suggest that if

negotiations went well it may prompt a rethink on the current rate path

direction. Interviewed on 'Peston on Sunday' Carney suggested that if

negotiations went worse than officials currently expect it may limit the Bank's

ability to cut interest rates, noting that the decision to leave the EU was

already crimping supply and trimming the pace of economic growth without fanning

prices. Recent meetings by PM May with senior EU officials would tend to suggest

that some serious negotiating could be going on behind the scenes involving EU

Juncker, Germany Merkel and France Macron and that any agreement by these

parties would have a major influence on the end result. Therefore, Brexit

headlines should be watched going forward as these should provide stronger

directional drives for sterling.