Solid start to Q3, but Brexit uncertainty to keep MPC on hold

While Michel Barnier, the EU’s Chief Negotiator, raised hopes that a Brexit deal will be secured soon, we suspect that an agreement is still some way off. This feeds into our forecast that sterling will pull back to $1.25 and €1.09 by end-2018. This is also the key reason why we think that the Monetary Policy Committee won’t move again until May 2019.

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