BOE: More pessimistic about the economic outlook - BBH

Research Team at BBH, notes that the BOE officials sounded more pessimistic about the economic outlook.

Key Quotes

“MPC member Gertjan Vlieghe said any lack of improvement in the economy after the June 23 vote would weaken confidence that inflation will move back to target. Fellow MPC member Kristin Forbes said it wasn’t definite that the softer UK data was all related to the Brexit referendum.

In that regard, the UK CBI industrial trends survey for May was mixed. Total orders improved to -8 from -11, but export orders worsened to -14 from -13. Output volume rose to 20 from 17. The larger than expected contraction in Taiwan’s export orders (-11.1% y/y) does not bode well for exports and growth ahead for EM.”