Tag Archives: UK economy

Although still not our central scenario, a no-deal Brexit is a distinct possibility on the 31 October, with distinct implications for the UK economy and financial assets.Prime Minister Boris Johnson has chosen a more aggressive negotiation technique than predecessor Theresa May, flagging the UK’s readiness to exit the European Union without a transition deal (current deadline is 31 October) if the withdrawal agreement that May reached with Brussels is not improved to match his demands....

Developments in Brexit negotiations, a hawkish Bank of England, and the strong performance of blue chip stocks mean that we have been updating our forecasts for the UK.Although the UK macro outlook has not changed much in recent weeks and considerable uncertainty remains in terms of the Brexit negotiations, the BoE’s hawkish shift has led to a material repricing of UK assets, including the currency and rates. In addition to monetary policy considerations, another driver of improved market...