It doesn’t exist […].”4  3. Facing difficult realities: The “no deal” scenario Thus, it is not that unlikely that there will be no free trade agreement for financial services – or other services sectors, for that matter. What would that mean for financial transactions between the UKand the EU?
Measures of the natural rate should thus serve as only one of many sources of information that monetary policy should draw on when forming a view on the longerterm outlook for real interest rates. Monetary policy should also acknowledge that r* is bound to change over time.