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 . “In my judgement, a situation where the negative demand effects outweigh those other effects is more likely, which would necessitate a loosening in policy,” Tenreyro said in a speech given in Glasgow. 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 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 % .