BoE: Blinded by Brexit - Rabobank

Research Team at Rabobank expects the Bank of England MPC to keep policy on hold at the November meeting.

Key Quotes

“The MPC is blinded by Brexit; the million dollar question is what kind of trading relationship will ultimately evolve from the negotiations.”

“Governor Carney boldly stated that Brexit doesn’t handicap policy making, but this is a bluff. The economy has performed fairly well recently, yet no one expects the MPC to act.”

“We continue to expect the MPC to act after Brexit and forecast a rate hike to 1.00% in May.”