Q&A cont. Q: What could be the impact of........>

BOE: Q&A cont.

Q: What could be the impact of Brexit on the global economy?

- A: As perceived probabilities change, his calls from fellow governors have

increased. Distinction between being ready and resilient doesn't mean markets

don't move. All realise global trade being hit by threatened actions. This is

creeping into how businesses organise their supply chains. Brexit would have

effects beyond just the GDP weighting of the UK economy on global GDP.

Q: How much of the slowdown in UK growth can be reversed by a smooth Brexit and

resolution of US-China trade talks?

- A: Some will not come back, but expect a sharper acceleration with not just a

deal but with clarity on future relationship. Uncertainty about future has

become more entrenched about future relationship among firms - not just the

initial deal/no deal. US-China hugely important for global economy. Nature of

negotiations has changed rules of trade. Nature of deal if it comes would send a

signal about future global trading relationships.