Inflation Report May 2019 Monetary Policy Summary i The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular: policy will depend on the balance of these effects on demand, supply and the exchange rate. the monetary poll the new trading arrangements between the European Union and the United Kingdom; whether the transition to them abrupt or smooth; and how households, businesses and financial markets respond. The appropriate path of monet response to Brexit, whatever form it takes, will not be automatic and could be in either direction. The Committee will always act to achieve the 2% inflation targetInflation Report May 2019 Monetary Policy Summary ii The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond. The appropriate path of monetary policy will depend on the balance of these effects on demand, supply and the exchange rate. The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction. The Committee will always act to achieve the 2% inflation target