In the UK, there seems to be more political conflict on how the post Brexit world should be, according to analysts at Deutsche Bank.
Key Quotes
“Bloomberg noted the Brexit Secretary Davis could quit the cabinet if PM May continues her proposal to tie the UK into EU customs rules for an open ended period of time. Elsewhere, unnamed sources told Bloomberg that a group of 12 rebel conservatives have signed an amendment calling for the UK to stay in the EU’s single market instead. So lots bubbling along before the Parliamentary voting session on PM May’s Brexit policies next Tuesday.”
“Meanwhile, the BOE’s McCafferty noted business investments in the UK should be growing at double digits in the current economic cycle but is now slower, partly due to Brexit uncertainty. On rates, he flagged that most MPC officials believes a modest rise in rates is required over the next two years, although the overall level of rates will stay relatively low for some time. Notably, he also added that there is plenty of room for more QE in case of a downturn.”
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