Interest rates are more likely to be cut than raised if the UK leaves the Bank without a deal, according to Bank rate-setter Tenreyo . The Bank of England 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. But some individual rate-setters have said recently that they would probably back a rate cut. A poll of economists has put the chances of a no-deal exit at 15 percent .
Interest rates are more likely to be cut than raised if the UK leaves the Bank without a deal, according to Bank rate-setter Tenreyo . The Bank of England 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 percent .