BoE has a balanced Brexit risks

Analysts at Westpac note that this week’s parliamentary grilling of Carney and other MPC members left the market with the impression that the BoE has a balanced approach to Brexit risks, though Chief Economist Haldane continued to voice a negative bias to their forecasts. “Debating of Article 50 bill is progressing smoothly for May’s government and should drift from market attention until the 8 March budget.” “The next two weeks should see a series of hints and leaks of the budget’s content. Although the OBR has warned against a loosening of fiscal policy, the better than anticipated path for this year’s deficit (had been forecast to be close to 2015-16 deficit of over GBP70bn) should allow for positive news.”