Evidence from the Bank’s Decision Maker Panel survey indicates that drag took 3-4% off business investment last year. That effect persists, though it has not intensified. As the Committee has repeatedly stressed, how the economy evolves will depend on how these expectations change as Brexit progresses. On the one hand, increased caution could drag on demand. On the other, if there is progress towards the new, deep and special partnership the government is seeking, a boom in investment and potentially consumption could be unlocked, boosting output. From a monetary policy perspective, the Bank is ready for Brexit. The MPC is well-prepared for whichever path the economy takes. We have the tools we need. We will be prudent not passive. We will respond to 20  All speeches are available online at www.bankofengland.co.uk/speeches  20  any change in the outlook in these exceptional circumstances to bring inflation sustainably back to target while supporting jobs and activity, consistent with our remit. Our guidance means that those who follow us will be better able to anticipate our actions. It will make those actions more powerful. And it will help households and businesses consume, save, hire and invest with confidence as the UK determines its path forward. Thank you. 21  All speeches are available online at www.bankofengland.co.uk/speeches  21  Appendix Frequently, the economy experiences shocks that drive inflation and output in the same direction. These shocks to aggregate demand can include variations in government consumption, households’ desire to consume, or business’ desire to invest.
However, financial services value-added in 2017 and 2018 has since been revised upwards by the Department of Statistics. The 3-year average growth rate over 2016–2018 is now 5.0%, while the 4-year average growth rate during 2016–2019 is 4.8%, based on the revised numbers. 1. [7] Science, Technology, Engineering, or Mathematics. 1. [8] SingSaver, (July 2020) Analysis of 1,000 responses from Singaporeans and permanent residents aged 18 and above, to understand how COVID-19 will change financial habits and affect personal finance challenges over the next 6 to 12 months. 15 / 15  BIS central bankers' speeches