Thursday, 14 December 2017

Bank of England sees boost from Brexit progress

The Bank of England says confidence among households and businesses is likely to be supported by last week's progress in Brexit talks.

Last week the European Union agreed that sufficient progress had been made in Brexit negotiations to allow progress to the next stage and to put in place a transition period from 2019.

The Bank said that would reduce the likelihood of a "disorderly" Brexit.

Bank policy makers have also agreed to keep interest rates on hold at 0.5%.

In minutes from the latest meeting of the Monetary Policy Committee (MPC), the Bank said that since its previous meeting in early November there had been two "significant events": the Autumn Budget and progress in Brexit talks.
Last week's agreement between the UK and the European Union would "reduce the likelihood of a disorderly exit, and was likely to support household and corporate confidence," the MPC said.

However, it said the reaction of households, businesses and markets to developments on Brexit talks "remain the most significant influence on, and source of uncertainty about, the economic outlook".

Since their last meeting, members of the MPC have also assessed the potential impact of the November's Autumn Budget.

They believe it will lift the level of GDP by 0.3% by 2020, as Chancellor Philip Hammond eased up on austerity measures.

BBC        News.