UK week ahead: Brexit, Supreme Court and BoE - Danske Bank
|Next week, the Brexit drama will continue and on Tuesday will be the hearing on whether the prorogation of the Parliament was unlawful. Later on Thursday the Bank of England will announce its decisions on monetary policy. According to analysts from Danske Bank, the Supreme Court ruling will not be a game-changer for Brexit.
Key Quotes:
“In the UK, the focus is on Brexit. While Parliament is currently ‘prorogued’ (suspended/sent home), that may change on Tuesday when the Supreme Court starts its hearing on whether the prorogation was unlawful or not (it is a bit unclear whether the ruling will also be given on Tuesday or whether the hearing will take a few days). Our guess is that the Supreme court will rule it was not unlawful (in line with the ruling from the High Court in England and Wales but against the ruling in Scotland). The ruling will likely cause a lot of political noise no matter what, but in reality we doubt it will be very important for the Brexit outcome (whenever that comes).”
“We do not expect Bank of England to change its monetary policy at its meeting on Thursday. The Bank of England is caught in the middle of a combination of a tight labour market, higher wage growth, high Brexit uncertainty, trade war uncertainty and slower global growth.”
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