Nevertheless, limiting the negative implications of these fluctuations on households and businesses is possible through the use of financial derivatives and I would like to encourage a greater use of these techniques by banks and businesses. The flexible exchange rate brings many advantages for the economy as a whole.
It also is the domestic counterpart to the pullback in the international economic environment, even if this is partly offset by the expansion in domestic government spending. We have also explored the scenario of a sudden and disorderly Brexit, using a range of modelling approaches.