In testimony to lawmakers, Carney said Wednesday that the response from the bank’s rate-setting panel over a ‘no-deal’ Brexit “would not be automatic” and will depend on the impacts on demand, supply and on the exchange rate. A fall in the pound could lead to a rise in inflation that could prompt some rate-setters to increase interest rates.
Carney said “some of us, myself included” think it’s “more likely” that some stimulus will be provided but that there were “no guarantees” on that.
