UK: Brexit concerns and politics to remain on the fore - Westpac

Tim Riddell, Research Analyst at Westpac, suggests that the BoE’s policy meeting and key agents’ report are over three weeks away, but are unlikely to shift the current glacial path of rate moves.

Key Quotes

“In the interim, no-deal Brexit concerns and UK’s precarious politics will be to the fore as the annual party conference period draws near.”

“Internal Tory politics remain tense at best but Labour is struggling to show any traction. Any spat triggering elections would likely result in another hung Parliament.”

“After testing the lower bounds of an effective 1.27-1.35 range, GBP/USD may rebound but GBP remains vulnerable to Brexit politics.”