Q&A cont. Q: How should the average person on...>

BOE: Q&A cont.

Q: How should the average person on the street prepare for a No Deal Brexit?

- A: Would say financial system is ready. Sterling is likely to be lower and

inflation higher while the economy slows. Degrees vary on many factors including

what does "no deal" mean? Does it mean instant WTO or could there be some side

deal? Says average consumer is acting prudently, not borrowing too much and real

incomes are growing. Households not over extended - probably correct approach to

take.

Q: Are politicians who expect massive monetary stimulus wrong?

- A: It depends... Carney starts to repeat earlier fairly evasive answer. There

are limits to what policy can do. Unusual circumstance to have major supply

shock which would be the case in No Deal.