Here's some quick thoughts on what the BOE may choose to use
Firstly, I'm not pulling a rate cut off the table but I think it's a low probability, just from assessing Carney's comments and tone. What we're more likely to see is QE and probably another round of economic boosting tools like the Funding for Lending scheme.
The UK isn't facing an economic crisis, nor are we in the midst of another global crisis. If anything I think the bank is being overly cautious but they could be doing that old job of burying bad news under other news. Let's face it the economy was already looking slightly softer before Brexit became so mainstream, and not many were believing Carney's tune that they see the next move in rates as up.
The BOE look to be acting to counter not only the Brexit risk but the possible underlying softness in the economy anyway, taking the opportunity for a sort of 2-4-1 fix if you will, which is why policy action will be more surgical than blood and thunder blanket easing.
Just my thoughts and we'll have to wait and see.
I'll also add that the market is now going to probably be thinking about blood and thunder moves instead of any lesser moves, so we're likely to see the pound remain under greater pressure.
