We´ve seen so many comments about Brexit today that I´m feeling a bit Brexit-sick. When I get sick I tend to forget things and I totally forgot about the BOE (Bank of England) chairman´s speech.
Well, the Carney didn´t wait long for delivering his statement. All the comments inside were things we´ve already heard before; the British consumer doesn´t give a damn about Brexit, the UK economic growth is consumer led … and we, the BOE saved the nation once again in August when we lowered the interest rates by 25 bps (basis points).
The headlight is interesting though; it said that they could respond both ways to whatever Brexit brings. That´s a sign that the BOE expects the Pound to fall further.
We haven´t seen that much inflation in the UK despite lower GBP, so if they´re getting prepared to hike the rates, then that means those guys are pricing in a possible GBP collapse.
The UK Premier Theresa May will be making her speech tomorrow which will likely reveal her approach to Brexit. But, with all this had Brexit talk we have seen lately, I don´t see any light at the end of the tunnel for the GBP.
Perhaps, the BOE might be right. Will they save the country once again?
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