this is bloomberg. ♪ scarlet: the bank of england rate decision is thursday and as promised, frederik ducrozetbank pictet joins us on the phone from geneva. as a practical matter, will a rate cut on thursday prevent a recession or only minimize the impact of one? frederik: very difficult to say in the early stages of the cycle. we don't have enough evidence and i think the bank of england doesn't have enough evidence to assess the full impact of brexit on business confidence, hiring decisions, investment. there is a strong case for the bank of england to be gradual and ease monetary policy step-by-step. but then signaling also and that will be a key part of the meeting, key part of the statement, the communication aspect. they could do more in the future. for what is the argument the bank of england to go slow, to go gradual? do you find argument compelling? well, many arguments including the lax monetary trade,and post brexit immigration deals would look like, what is the fiscal policy -- that is another key aspect of the meeting. what the budget for the u.k. will be in the next few years. we