The Bank of England (BOE) policymaker Michael Saunders clearly hinted at a likely rate cut if a high level of Brexit uncertainty persists going forward.
Additional Quotes:
The UK economy has weakened markedly, opening up modest amount of spare capacity.
Brexit uncertainties are akin to a “slow puncture” for the UK economy, causing growth to slow to a crawl.
Persistently high Brexit uncertainty now looks most likely outcome for the UK, even without a no-deal Brexit.
Risks to global economy are tilted towards further disappointment.
Limited and gradual rate rises needed if global growth recovers and Brexit uncertainty falls significantly.
Rates could go either way after no-deal Brexit, depending on fx rate and growth.
Cost of changing policy course if Brexit outcomes change is probably quite low.
Deferring monetary policy changes until after Brexit outcomes clear could lead to inappropriate policy.
“quite plausible” for BOE’s next move to be to cut rates, even if no-deal Brexit avoided.
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