BoE Agents Report Says It Sees no Clear Signs of Brexit Economic Impact

The Bank of England said on Wednesday it had seen no clear signs yet of a sharp economic slowdown after last month’s vote to leave the European Union, raising questions over how aggressively it will act to boost the economy when it meets next month.

The BoE’s regional agents, who speak regularly with companies, said business uncertainty had risen markedly but most firms did not plan to cut hiring or investment.

“As yet, there was no clear evidence of a sharp general slowing in activity,” the report said.

A Reuters poll on Wednesday showed economists saw an average 60 percent chance that the British economy will suffer a recession in the coming year and most expect the BoE will cut rates on Aug. 4.

With no hard data yet published on the impact of the Brexit vote on the economy, investors are taking their cue from any fresh signs of what might be going on.

Sterling jumped almost a cent against the U.S. dollar as the BoE report struck a less downbeat tone than other surveys which have shown falls in business and consumer confidence.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza