Why interest rates could soon be falling

Analysts detected a doveish tone from the bank, which has a near impossible job given Britain’s febrile political climate and Brexit-related uncertainty, says James Moore

Which way will he jump? Brexit leaves Bank of England governor Mark Carney on the horns of a dilemma (Reuters)

Given the febrile state of British politics, and the chronic uncertainty (there’s that word again) created by Brexit, no one’s really sure in what direction that might be.

So let’s run through the scenarios.

A crash-out Brexit is theoretically illegal (at least from the British side) but don’t kid yourself. It could still happen. The bank’s rate-setting Monetary Policy Committee (MPC) has to plan for all contingencies and it is very definitely one of them.