LONDON (Reuters) – The Bank of England is more likely to cut interest rates than raise them in the event of a disorderly, no-deal Brexit, rate-setter Silvana Tenreyro said on Thursday.
“In my judgement, a situation where the negative demand effects outweigh those other effects is more likely, which would necessitate a loosening in policy,” Tenreyro said in a speech given in Glasgow.
“But it is easy to envisage other plausible scenarios requiring the opposite response.”
The BoE has said that its response to a no-deal Brexit would not be automatic, but last week Governor Mark Carney said it would probably give more support to the economy if it suffers the shock of a no-deal Brexit.
(Reporting by Andy Bruce)