Brexit the priority but BoE may offer some surprises
When you’re in the middle of the Brexit bubble, it can be easy to forget that there are other things going on – a Bank of England meeting, for example, that once upon a time would have been the headline act, for those in the UK anyway.
This was particularly true once every quarter when the central bank would release its new economic forecasts and offer an update on its expectations for interest rates, growth and inflation. The press conference would follow and Governor Mark Carney and his colleagues would field questions from the media keen to pick holes in their assumptions and projections.
All of this would typically trigger above normal levels of volatility in the pound and play a big role in the direction of it over the months ahead.
Well this is actually one of those months and on Thursday, Carney and his colleagues will gather to go through this process. The only difference is that no one is talking about it and the only headlines it’s likely to make is those that relate to Brexit, or more accurately the Bank’s pessimistic view of it. Or project fear, as they’ve repeatedly being accused of being party to.
For those of us that are still interested in what the central bank has to say, even if its views on the outlook are subject to significant revisions pending the outcome of the Brexit negotiations, Thursday could still be quite interesting.