Cautious BoE warns on Fog of Brexit
8 February, 2019
Sterling dipped on Thursday afternoon before later recovering after the Bank of England warned about the “fog of Brexit” and its unfavourable impacts on the economy.
In a widely expected move, the Bank of England left interest rates unchanged at 0.75% in February. However, the endless uncertainty over Brexit and slowing global growth forced the central bank to cut its 2019 economic growth forecast. UK growth is now expected to expand 1.2% this year from 1.7% projected in November. With the BoE’s dovish slant also dampening expectations over further interest rate hikes anytime soon, the battered Pound could be in for further punishment.
The key takeaway from today’s BoE meeting is that the damage to the economy from Brexit has increased. With businesses holding back on spending and consumer feeling the heat, the BoE is likely to maintain a cautious stance until more clarity and direction on Brexit is provided.
Source link
Related materials
Emerging market currencies held steady near the end of the week as cautious optimism over the progress of US-China trade talks supported...
Investors in Asia are sitting on the sidelines as they cautiously await the outcome of high-level trade talks between the U.S. and China. With the earnings season...
Investor appetite to risk remains on the rise today, with equities in green across Asian markets. The slowdown in China's economy will not impact...
Santa arrived a little later than expected this year. At one point investors thought Santa would never show up with markets in red and bears not letting go...
Equity investors didn't like what they heard from Fed Chair Jerome Powell on Wednesday. After trading more than 350 points higher intraday, the Dow...
The relief rally led by the US-China trade war truce didn't last long. Investors in Asia were seen taking profits from Monday's bounce in equities...
Optimism over the temporary trade truce announced between the United States and China after the G-20 summit in Argentina last weekend has played...
Reinforced expectations over higher interest rates in the United States after the Federal Reserve provided a consistent narrative that policymakers...
Improved risk appetite and an improved attitude towards global stock markets have helped support a number of different APAC EM currencies...
Top Brokers offering Daily Forex Market Reviews
Forex Currencies Forecasts
Top 10 Forex Brokers 2019
| # | Broker | Review | |
|---|---|---|---|
| 1 |  | easyMarkets | 92% |
| 2 |  | FXTM | 88% |
| 3 |  | HYCM | 87% |
| 4 |  | FxPro | 85% |
| 5 |  | FIBO Group | 84% |
| 6 |  | OctaFX | 83% |
| 7 |  | HotForex | 82% |
| 8 |  | FXCM | 79% |
| 9 |  | XM | 73% |
| 10 |  | FP Markets | 70% |