Good morning and welcome to Monday’s Money
Minute, where we look ahead to this week’s biggest financial stories.
This week, on Friday, Britain officially leaves the European Union.
We then move to a transition period during which Britain and the EU will attempt to finalise
their future relationship. Currently, the deadline for finalising that
deal is the end of this year. So while this may be the end of the beginning
for Brexit, it won’t be falling out of the headlines just yet.
Perhaps more important for UK investors this week though, is the Bank of England’s next
monetary policy decision. This will be announced on Thursday.
The decision is finely balanced. Many analysts think the Bank might cut the
key interest rate from 0.75% to 0.5%. However, the stronger-than-expected survey
data from the manufacturing and services sectors that we saw on Friday just past might stay
the Bank’s hand. The Federal Reserve also gives its latest
decision on monetary policy in the US on Wednesday. Rates in the US are almost certain to remain
on hold. Have a good week!