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BREXIT and the UK Economy

Article 50’s timetable has been thrown into the air by a legal challenge to the High Court.

Brexit uncertainty remains a significant influence on investment decisions and formal negotiations are still to start.

During this period it is going to be too difficult for the Bank of England to manoeuvre, as volatility for the pound versus other currencies has added an additional dimension. How far would it fall before the BoE intervenes?.

Britain’s services sector continued to grow in October, but costs rose by their fastest in 20 years indicating the weakened pound could mean tough times ahead.

In the BoE Inflation Report, Mark Carney addresses what they’ve learnt since 23rd June and which direction they envisage the next rate move to be in. The key point is that savers will not see a significant rise in interest rates.

The BoE Inflation Report for November 2016 is available via the following link: BoE Inflation Report – November 2016

Key points:
• Non-moving rates
• Sterling depreciation
• Unemployment rise
• Tolerating increasing inflation

This economic and financial background points to the importance of focusing on long-term investment planning and professional investment advice.

 

 

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