• Rates could go either way after Brexit

• Brexit uncertainties are a slow puncture for the UK economy

• The UK economy has weakened markedly, opening up modest amount of spare capacity.

• Persistently high Brexit uncertainty now looks most likely outcome for the UK, even without a no-deal Brexit.

• Risks to global economy are tilted towards further disappointment.

• Limited and gradual rate rises needed if global growth recovers and Brexit uncertainty falls significantly.

• Cost of changing policy course if Brexit outcomes change is probably quite low.

• Deferring monetary policy changes until after Brexit outcomes clear could lead to inappropriate policy.

GBP falls on dovish remarks from Saunders, sending GBP/USD back below the 1.23 handle.