Should Brexit fog clear, risks to rates lie on the upside

The thickening Brexit fog meant that the Monetary Policy Committee was always going to leave interest rates at 0.75% today and it looks as though that fog won’t fade for a few months. But should a Brexit deal be agreed, which we still think is just about the most likely scenario, rates may rise faster than the markets anticipate. It follows that the upside risks to sterling are greater than the downside risks.