Mark Carney discusses potential paths for monetary policy during the next phase of Brexit. He reviews the MPC’s experience with forward guidance and how it has helped households and businesses understand how monetary policy is likely to evolve. He concludes by noting that Brexit is the latest – and potentially most important – recent supply shock to affect the UK economy. How the economy evolves will depend on how households and businesses’ expectations change as Brexit progresses. He concludes by noting that, whichever path the economy takes, the Bank is ready for Brexit.