United Kingdom house prices would crash by a third after no-deal Brexit

Pound Higher ahead of BoE

Bank of England: No surprises, recognizes Q3 growth may be higher – Danske Bank

"As expected, the Bank of England (BoE) voted unanimously to keep the Bank Rate at 0.75%". But now, most economists believe that Bank of England would not raise rates again until after the Britain has left the EU.

The Bank's regional staff reported that businesses were cracking down on costs and holding back on investment ahead of Brexit, which is due at the end of March.

Meanwhile, the latest leg of a sudden spike over the past hour or so could also be attributed to some fresh technical buying and hence, a follow-through up-move, towards testing 100-day SMA, now looks a distinct possibility.

The coming six to eight weeks are due to see intensive talks between London and Brussels to hammer out details of the divorce deal, and some of Prime Minister Theresa May's own members of parliament strongly resist her preferred compromise.

The Bank signalled last month that rates would need to rise by around a quarter point a year over the next two or three years to bring inflation - now running at 2.5% - back to target.

Carney warned legislators last week that if Britain left the European Union without a trade deal, economic difficulties could squeeze British households' incomes for years to come.

Minutes from the September meeting of the MPC said that: "Any future increases in Bank Rate were likely to be at a gradual pace and to a limited extent".

The US Dollar continues to be weighed down by Thursday's weaker than expected US consumer inflation figures, which coupled with Brexit optimism helped the pair to continue gaining positive traction for the fifth consecutive session. But economic growth in the three months to July was faster than most economists had predicted at 0.6 percent, after one of the hottest summers on record encouraged Britons to spend more on barbecues and at bars and restaurants.

The lower projections are expected to be in light of some patchy Eurozone economic data over the summer on top of increased global uncertainty steaming from United States trade policy and Turkey's economic woes.

Latest News