economics

A ‘Supercharged’ Brexit Deal Would Alter BOE Thinking

A ‘Supercharged’ Brexit Deal Would Alter BOE Thinking

Bloomberg Economics expects a so-called supercharged free trade agreement to lift the BOE’s forecasts for the U.K.’s supply potential -- the economy’s ability to grow without sparking inflation -- though the boost is likely to be smaller than the 16 billion pounds ($21 billion) Governor Mark Carney reportedly attached to the Chequers plan back in September. The central bank will probably see faster spending growth as uncertainty dissipates, while the pound is also likely to strengthen. Taken together, BE expects a supercharged deal to lift the BOE’s expectation of inflation in the medium term.