Q&A with Carney
Repeats tightening line and adds that this is going to be a more challenging time for UK households
- Smooth Brexit assumes there will be an agreement on future trading
- We have not made a forecast on a disorderly Brexit transition (short sighted??)
- Squeeze on real household income is not all because of Brexit
- Weak wage growth partly reflects poor productivity
The pound is falling again because he's making a case that the negatives in the economy aren't just due to Brexit but were in place before that all kicked off. That's dovish in its insinuation.
- There is evidence that some firms are hesitating to bring in higher wage costs during uncertainty around Brexit
- We do expect real income to turn positive over next few years
