BoE: threat of a rate hike reduced - ING
|James Knightley, Senior Economist at ING noted that the second round of Brexit negotiations is underway this week with discussions focusing on the UK’s exit bill and citizens’ rights, while the BoE is looking like less of a threat.
Key Quotes:
"Brexit Secretary David Davis stayed in Brussels for just three hours on Monday, but he will return again on Thursday to get an update on progress and to schedule details for the next round of discussions."
"Conservative ministerial infighting continues with briefing and counter-briefing commonplace given Theresa May’s weakened position as Prime Minister. Debate continues about how long she can stay on with the October Conservative party conference (1-4 October) seen as a key event that could determine her future."
"Meanwhile, the threat of an imminent Bank of England rate hike has receded thanks to a surprise dip in inflation and subdued activity data. Economic figures increasingly suggest the UK economy is losing steam."
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