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Bank of England Governor Mark Carney said the BoE would only factor the possibility of a no-deal Brexit into its economic forecasts if Britain’s next prime minister decides to leave the European Union without a transition agreement.

Last week, the BoE highlighted a disconnect between the “smooth” Brexit scenario that underpins its forecasts and the market pricing in a chaotic exit from the EU that would hurt Britain’s economy and probably mean rate cuts.

Carney repeated his view that the BoE was more likely to provide more stimulus for the economy in the event of a no-deal Brexit than to tighten monetary policy.

The dollar extended its recovery on Thursday, gaining versus the yen and euro, on hopes the United States and China will agree a trade truce before a G20 summit in Japan this weekend.

The two countries have agreed to a tentative truce in their trade dispute, Hong Kong’s South China Morning Post said, citing sources, before U.S. President Donald Trump and Chinese President Xi Jinping leaders meet on Saturday.

That supported buying of the dollar, which had weakened in recent weeks on expectations the Federal Reserve would cut interest rates and buying of safe-haven currencies such as the Japanese yen by investors worried about the trade conflict.

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