BOE governor, Mark Carney, to speak at the bottom of the hour
The BOE statement and inflation report offered little but there are a few glaring details that needs to be addressed. The first and foremost is of course the fact that the central bank's detailed projections came with no inclusion of a no-deal Brexit possibility.
The central bank further elaborated that they still assume a smooth Brexit outcome and that would lead to gradual rate hikes under such a scenario. Meanwhile, they argue that a no-deal would mean a lower pound, slower growth and faster inflation.
Meanwhile, in their inflation report they see inflation increasing modestly over the next few years with the central forecast being based on one rate cut by early 2020. That is a bit convoluted given their forward guidance and view that they are assuming a smooth Brexit scenario, no?
The pound may not be moving much after the decision/statement but there's every chance that Carney could offer something for traders to go on later.
