Bank of England forecast – Comments

“Today’s decision to maintain the current monetary policy stance comes against the backdrop of further easing in the euro zone and in the US. However, as the Bank wants to keep its powder dry ahead of a potential unmanaged Brexit, the announcement is in line with expectations. Should a no-deal Brexit materialise over the next weeks, we expect additional monetary stimuli to counterbalance some of the adverse effects no-deal Brexit would inflict on the country. Dun & Bradstreet is maintaining a ‘deteriorating’ risk outlook and a medium risk rating for the UK, following a downgrade in early September on the back of the rising risk of a no-deal Brexit and continued uncertainty.”

Markus Kuger, Chief Economist at Dun and Bradstreet