BoE Deputy Governor Dave Ramsden said the central bank is so far still adopting the assumption of smooth Brexit in its forecasts. But he also noted that a “range of outcomes for Brexit are clearly still possible”.
Pointing to the market, he said “option pricing implies that market participants are insuring to a greater degree against tail outcomes.” Also, Sterling’s depreciations suggested a “greater increase in relative weight on downside outcomes”.
Nonetheless, he played down the moves and noted that were still small relative to those we saw ahead of the referendum.”
