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BREAKING NEWS

Bank of England most likely to cut rates in a no-deal Brexit - Tenreyro

Bank of England most likely to cut rates in a no-deal Brexit - Tenreyro
FILE PHOTO: The Bank of England is seen in the City of London, Britain, February 7, 2019. REUTERS/Hannah McKay -
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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)

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