The BOE head is having his ear bent by a parliamentary committee
- BOE does not have a bias about Brexit
- BOE got the broad economic channels right on the impact of Brexit
- UK’s outperformance vs the BOE’s Aug 2016 forecast was due to a stronger global economy, and also due to easier financial conditions and a looser fiscal stance that expected
- Understanadble that businesses are waiting to see what the future ties with the EU will be
- Expects a pick up in investment in 2019
As expected, he’s faced questions about the BOE’s forecasting so far during Brexit and that’s been the topic in the UK today in general. You’re damned if you do and damned if you don’t in his game, when it comes to forecasting but in terms of Brexit, I applaud the fact that they looked at, and planned for a worser outcome. It’s exactly like trading. Plan for the worst and everything else is a bonus.
Also as expected, there’s been no mol pol chatter as of yet, and probably little hope of getting any.