BOE's Smooth Brexit Assumption Doesn't Convince Market Skeptics
- Central bank’s new growth forecasts based on orderly divorce
- Pound slumps as economists and traders say that’s ‘optimistic’
BOE Sees Slower Than Anticipated Consumption Growth
This article is for subscribers only.
The Bank of England is taking it for granted that we’ll see an orderly Brexit. Investors aren’t as confident.
While Governor Mark Carney said the U.K. central bank may have to raise rates sooner than markets are expecting, he also said that’s based on new forecasts that presume a “smooth” adjustment to the new relationship with the European Union. Traders questioned the likelihood of such an outlook, and sent the pound down.