The EU-UK Withdrawal Agreement was rubber stamped by the EU 27 leaders on Sunday after 20 months of negotiation. Yet the agreement might be entering the most difficult phase of its life as it’s unclear how the legislation will get through Parliament with so many MPs saying they’ll vote against it. Prime Minister Theresa May has vowed to deliver Brexit, the next few weeks should reveal which package arrives.
Markets expect the first rise in Bank Rate in December 2018. And judging from the Inflation Report, the Monetary Policy Committee (MPC) members seem at ease with this. Their reason? Global economic headwinds that are blowing harder than before.
So far, 2015 has been a good year for the household finances. An increasing number of households are receiving pay rises and are enjoying a record low in consumer price inflation, particularly falling food and energy prices.
Furthermore, UK mortgage interest rates hit a record low in June. However, despite this favourable backdrop, it is perhaps somewhat surprising that this has not had a more positive impact on consumer spending.