BOE’s Vlieghe: BOE may need to raise rates if inflation expectations are deanchored by a no-deal Brexit

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More comments are crossing the wires from the Bank of England (BOE) external MPC member Gertjan Vlieghe, as he continues to speak at Thomson Reuters in London this Friday.

Policy outlook could easily go in either direction with a cliff-edge Brexit.

Public uncertainty about BOE policy reflects general political and economic uncertainty.

Don’t have to see much of a hit to demand to justify cutting rates to near zero

More likely than not rates would reach lower bound after a no-deal Brexit.

Says that 0.25% is not the lower bound for UK rates, it is lower.

But says it is possible BOE may need to raise rates if inflation expectations are deanchored by a no-deal Brexit outcome.

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