Phew, the Bank would deploy common sense on no-deal Brexit | Nils Pratley

Previous projections of a deep recession had assumed the MPC would crank up interest rates

A no-deal Brexit, in economic terms, would be a trip into the unknown and would very likely involve a severe shock. Even the sober sub-set of Brexit promoters concedes the latter short-term point. But at least one likely outcome is becoming clearer: the Bank of England would not make things worse by cranking up interest rates.

The idea that it might was a strange notion entertained by Threadneedle Street last November as it sketched various scenarios for the UK's departure from the European Union. In the most hellish projection, GDP was seen as falling by 8%, meaning a worse recession than the one that followed the 2008-09 financial crisis.