By Kate Holton
The Bank of England will reassess the economic outlook once it has more visibility on the nature, and transition to, the country’s new relationship with the European Union after Brexit, Governor Mark Carney said on Thursday.
Carney was speaking after the Bank raised interest rates for the first time in more than 10 years, but said it expected only “very gradual” further increases over the next three years.
“The impact of Brexit on the forecast will evolve as negotiations progress,” Carney said.
“In particular, any resolution of the uncertainty about the nature of, and transition to, the UK’s future relationship with the EU insofar as it affects the behaviour of households, businesses and financial market participants, would prompt a reassessment of the economic outlook.”