Interest rates will probably be cut or held in a “no deal” Brexit to boost the economy, according to policymaker Gertjan Vlieghe, rather than raised as Mark Carney indicated could happen.
“In the case of a no-deal scenario I judge that an easing or an extended pause in monetary policy is more likely to be the appropriate policy response than a tightening,” said Mr Vlieghe, an external member of the Bank of England’s Monetary Policy Committee.
Previously Carney, the Bank’s Governor, has indicated that a rate rise would be a possibility because investment could collapse, potentially pushing up inflation.
