Bank of England Faces Quandary as UK Weathers Early Brexit Hit

The Bank of England, which signalled a few weeks ago that a fresh interest rate cut was likely next month, has been put on the spot by signs that Britain’s economy has weathered the initial shock of the Brexit vote better than expected.

While the prospect of a rocky divorce from Europe means Britain may need further stimulus from the BoE at some point, a survey of the huge services sector released on Wednesday suggested the economy has so far avoided a sharp slowdown.

The survey added to other indicators that have undermined the view held by many private economists until recently that Britain was heading for a recession after it voted to leave the European Union.


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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.