Interest rates are more likely to be cut than raised if the UK leaves the EU without a deal , according to Bank of England rate - setter Silvana Tenreyro . The UK has already suggested a fall in trade and new trade tariffs would raise inflation and cause a rate rise , but other rate - setters have already suggested rates would fall . Tenreyo also said there may also be some tightening if the UK ’s exit was smooth and added that she was “ mildly improving ” economic situation in the longer term . A poll of economists has put the chances of a no - deal exit at 15 % .
Interest rates are more likely to be cut than raised if the UK leaves the EU without a deal, according to Bank of England rate-setter Silvana Tenreyro. The Bank has already said a fall in sterling and new trade tariffs would raise inflation and cause a rate rise, but other rate-setters have already suggested rates may fall. Tenreyo also said there may also be some tightening if the UK’s exit was smooth and added that she detected “mildly improving” economic trends in the longer term. A poll of economists has put the chances of a no-deal exit at 15%.