Today I want to discuss what uncertainty means for the UK’s economic performance, and how the Bank of England can best respond to it. The result of the referendum is clear. Its full implications for the economy are not. The UK can handle change. It has one of the most flexible economies in the world and benefits from a deep reservoir of human capital, world-class infrastructure and the rule of law. Its people are admired the world over for their strength under adversity. The question is not whether the UK will adjust but rather how quickly and how well. Nonetheless, the decision to leave the European Union marks a ... (full story)