BOE’s Carney Says Risks to Forecast Are Skewed to the Downside

The transcript discusses the UK's economic outlook, focusing on limited supply capacity growth and the impact of the UK's new trading relationship with the EU. It highlights the MPC's projections, which now assume a greater adjustment within a three-year period. The UK growth is expected to increase from 1% to 2.1% by 2022, supported by lower uncertainty, fiscal policy, and external demand. However, risks to potential supply and GDP growth are skewed to the downside due to uncertainties around the FTA with the EU.

What is the projected average potential supply growth rate over the forecast period?

How does the UK's new trading relationship with the EU impact supply growth?

What are the projected growth rates for the UK economy in 2021 and 2022?

What is the expected emergence of excess demand in the forecast period?

What factors contribute to the MPC's judgment on the risks around GDP growth projections?