Carney speech: Re-acceleration of global economy that we had expected has not transpired

Additional comments from Bank of England Governor Mark Carney continue to cross the wires as testifies before the Treasury Committee as part of the BOE's inflation report hearings.

Carney said that they were expecting fairly notable market moves in a no-deal scenario and added that the FPC could consider cutting the counter-cyclical capital buffer in a no-deal. Carney further reminded that the market adjusted very quickly and in an orderly fashion to the 2016's Brexit referendum result while explaining that they would be forced to intervene in the FX markets in most extreme cases.

"I can’t see a circumstance where we would intervene for monetary policy reasons," Carney stated. "We have the authority to take action if necessary."

Commenting on the global economic outlook, Carney noted that the re-acceleration of the global economy that they had expected had not transpired due to the trade conflict.