Doing the post BoE media rounds

BoE's Carney on BBC Radio

  • Market expectations for rates moving to 1.5% over the next few years isn't a bad rule of thumb.
  • RBS results are another sign that we're moving beyond the financial crisis.
  • Royal Bank of Scotland has seen first-half profits fell, but is on course to pay its first dividend in 10 years. Attributable profit was £888m, compared with £939m in 2017.
  • We are not raising rates to give a cushion if we need to cut rates again.
  • The possibility of a no deal Brexit is uncomfortably high.
  • Absolutely in interest of the UK and EU to have a transition deal, no deal Brexit highly undesirable
  • UK, EU should do all they can to avoid no deal Brexit
  • No deal Brexit would likely mean higher prices for a period of time
  • A no deal Brexit is relatively unlikely, but possible
  • We will not be in a situation of runs on banks in any type of Brexit
  • UK government has done what it needs to for preparing banks for Brexit, the EU has more to do
  • Financial system will be ready for undesirable, unlikely scenario of no deal Brexit
  • UK economy has grown by a percentage point less than we had predicted prior to Brexit vote
  • We need a long transition, yes

Chart thoughts:

  • GBP/USD falls to 11 day low on the comments about a no deal Brexit
  • Sinking to the bottom of the daily support zone and looking weak