BoE to stay on hold? – BBH

The Bank of England meets today as after raising rates last month, it is now on hold and a unanimous vote to this effect would not be surprising, according to analysts at BBH. 

Key Quotes

“This week's economic news has been mixed.  Inflation was a bit firmer in the headline measure but others were flat.  While there were fewer people working, earnings growth ticked up.  Today's news showed that UK consumers are more resilient than expected.  Retail sales jumped 1.1% and 1.2% excluding auto fuel.  The median forecast was for a 0.4% increase, and to top it off, the October series was revised higher.”

“Sterling closed above $1.3400 yesterday and has record the week's high near $1.3465 today.   Initial support is pegged in the $1.3380-$1.3400 area. The euro has been largely confined to a GBP0.8780-GBP0.8850 trading range this week. Sterling has held up well in the aftermath of the UK government's defeat in Parliament yesterday. By a narrow majority, made possible by Troy members themselves wrested the final word on Brexit from the government. A vote on the final Brexit deal must be held before it is final.  The government faces a similar defeat next week if it does not withdraw a clause in Brexit bill that specifies the exit date of the end March 2019.”