Political chaos, economic calm

With the ECB loosening monetary policy this week, the Fed expected to cut interest rates for the second time in two months next week and the growing political chaos at home, you’d be forgiven for thinking that the Bank of England might be poised to cut interest rates at its meeting next week. But the UK economy is not quite as weak as the political situation might imply. So if there is a Brexit deal or many more delays, the UK could even buck the global trend and raise interest rates. If there is a no deal Brexit, the UK will probably join the ECB and the Fed in cutting rates – but for very different reasons.