Bank of England leaves rates unchanged amid Brexit fiasco


The Bank of England left its interest rate unchanged today at 0.75%, exactly as expected. Given the unrivalled incompetence of the UK Government’s handling of Brexit, it is somewhat encouraging that Sterling remains as high as it does. There is not much common ground between the two sides, but the one thing that they can agree on is that the (twice-rejected) Withdrawal Agreement to which Prime Minister May is so personally committed should be abandoned. The economic concerns surrounding Brexit that were so enthusiastically promoted by the pro-EU lobby have turned out to have no substance at all, and the UK is actually fairly well-placed to succeed provided the financial millstone of the PM’s “Deal” is discarded. With her personal approval rating at its lowest point her removal must come soon, and replacing her with a popular and charismatic leader should be the catalyst for a recovery in the value of Sterling. In fact, her stock has sunk so low that replacing her with anybody would be an improvement. We do not feel that any outcome is likely to lead to any interest rate rises for many months to come, and if anything a rate cut is the more credible outlook for the future.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July


Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019


Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally


Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower


Dollar Yen breaks lower

Read more