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.


USD/CAD – Canadian Dollar Under Pressure, Markets Eye Trade Balance

EUR/USD – Euro Hugs 1.12, US ADP Employment Report Next

UK Services Growth Casts Doubt on BoE Rate Cut Prospects – PMI

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)