UK: Queen's Mansion House speech in the limelight – BBH

The Queen's Speech is delivered by the UK Prime Minister on June 21, and outlines the legislative agenda for the parliamentary session and will be keenly watched.

Key Quotes

“In an unusual move, it was pre-announced that there will not be a Queen's Speech in 2018.  Instead, the parliamentary session will run two years.  The announcement was seen as another indication that May does not intend to change the main approach to Brexit.  Of note, after a couple of days of negotiations with the Democrat Unionist Party (DUP), no formal agreement has been reached.  May’s decision to push ahead with the Queen's Speech without the agreement illustrates her commitment to lead the UK even with a minority government.”  

“Carney and Hammond will deliver their delayed (due to the Grenfell fire) Mansion House speeches a day earlier.  Recall that last week, the BOE's decision to stand was decided by a 5-3 vote.  Carney can be expected to present the case of looking through the increase in price pressures as primarily a transitory phenomenon related to the past decline in sterling.  It will be gradually passing in the second half of the year.  Meanwhile, the slowing of the labor market, weaker earnings growth, and less consumption pose greater near-term risks.”