BOE's Carney: No-deal Brexit would be a very unusual situation

Carney continues to testify before the Treasury select committee

• Starting position of UK economy is very different from time of referendum
• Would have to go back to the 70s to find a comparable situation
• BOE's response to a no-deal on whether to hike or cut rates would depend
• Policy will depend on balance of supply, demand, FX
• If further excess demand comes about as GBP falls, expect a rate hike
• There are also scenarios where rates could fall post-Brexit

Yet again, refusing to give too much away with his comments here. Basically, the BOE's hands are tied until they get more clarity on how Brexit will develop. So, Carney is in no position to provide any standard play-by-play rule book for how the central bank will respond to Brexit until they know of what to expect.