BoE’s Broadbent: Brexit to cause drag on economy’s long-term supply capacity

Bank of England (BoE)  Deputy Governor Ben Broadbent said on Friday that he still expects Brexit to cause a drag on the economy’s long-term supply capacity, as reported by Reuters.

Meanwhile, BoE Chief Economist Andy Haldane noted that there are significant risks around the BoE’s inflation forecasts on both sides. “If demand in the economy maintains momentum, that could impart more upside pressure on inflation than is in the BoE’s forecast,” Haldane added.

Market reaction

These comments were largely ignored by market participants and the GBP/USD pair was last seen trading at 1.3906, where it was up 0.15% on a daily basis.