020 7898 0500Following last week’s Bank of England inflation report we saw sterling weaken sharply as expectations of an interest rate increase were pared back. The BoE vote shifted back to 6-2 from 5-3 in favour of holding rates. In addition, growth forecasts were reduced as uncertainty over Brexit was cited. As a result, sterling yesterday consolidated slightly but still remained on a downward trend as the market continues to decipher the rhetoric.
In the meantime, Halifax said the cost of the average home rose by 0.4% between June and July but the annual house price growth had slowed to 2.1%.
Once again, it is a quiet day today in terms of economic data, with just the secondary retails report released from the British Retail Consortium. However, as we have seen previously, if anything negative is posted in reference Brexit it could affect sterling.
