Carney comments:
Could be greater than usual short-term volatility in UK data
'Diverging' and 'volatility' here are code words for: Our forecasts have been too optimistic.
UK fiscal policy moving towards a more-accommodative stance
UK households resilient to a Brexit that has not yet happened
Financial markets are hedging their bets against Brexit downsides, sterling risk reversals building
MPC judges that supply and demand are broadly in balance
Sees excess demand emerging, lifting domestic pressures
Some Brexit scenarios could mean a UK supply shock
A smooth Brexit transition could lead to some pound appreciation
A disruptive withdrawal could result in some further depreciation
BOE could respond to Brexit with rate hikes or cuts
Would depend on inflationary pressures, GBP and trade deal
Economy is now broadly in balance and inflation is above target
Any Brexit deal problem would be immediate, not speculative (unlike the vote)
